FX.co ★ German Producer Prices Fall Further in January, Deepening Deflationary Trend

Germany’s producer price index (PPI) declined more sharply in January 2026, underscoring continued deflationary pressure at the factory gate. According to data updated on 20 February 2026, PPI fell by -0.6% month-over-month, following a -0.2% month-over-month drop in December 2025.

The widening decline indicates that producer prices are weakening at a faster pace, as the January reading reflects a steeper month-on-month fall than in the previous period. On a comparison basis, the “actual” figure for January shows the change versus December 2025, while the “previous” figure for December captures the change versus November 2025. The successive negative prints may feed into lower pipeline inflation pressures in the months ahead, with potential implications for overall price dynamics and monetary policy expectations in Germany and the wider euro area.