FX.co ★ German Producer Prices Drop More than Expected

Germany’s producer prices fell by 3% year-on-year in January 2026, deepening from a 2.5% decline in December and surpassing market expectations of a 2.1% drop. The decrease was primarily driven by an 11.8% fall in energy prices. Within the energy sector, notable declines were recorded in natural gas (-13.7%), electricity (-11.2%), mineral oil products (-8%), and district heating (-0.3%).

Prices for non-durable consumer goods inched down by 0.2%, pressured mainly by a 1.3% decline in food prices. Excluding energy, however, producer prices rose by 1.2%, accelerating from a 0.9% increase in December 2025. Price gains were also observed for capital goods, up 1.8%, and for durable consumer goods, up 2.1%.

On a monthly basis, producer prices fell 0.6% in January, after a 0.2% decline in the previous month, contrary to market expectations of a 0.3% increase.