Germany's producer prices fall further in January, more than expected

By Mucahithan Avcioglu

ISTANBUL (AA) - Producer prices in Germany fell 3% on an annual basis in January, more than market forecasts, according to official data released by Destatis on Friday.

The decline in the producer price index (PPI) followed a drop of 2.5% in the previous month, while the markets had expected it to fall 2.1% in January.

Lower energy prices were the main reason for the year-on-year decline in producer prices.

Energy prices in January fell 11.8% year-on-year, as natural gas prices dropped 13.7%.

"The price of electricity was also considerably lower (-11.2%) than in January 2025, while district heating was only slightly less expensive (-0.3%) than in the same month of the previous year," Destatis said.

Prices for non-durable consumer goods were also lower, falling 0.2% on an annual basis.

On the other hand, capital goods prices in January were up 1.8%, and durable consumer goods rose 2.1% on a yearly basis.

Intermediate goods prices in January were also up 1.2% year-on-year. The increase was mainly attributable to higher metal prices (+6.6%), as the prices of precious metals (+68.2%) increased significantly, Destatis said.

Meanwhile, producer prices dropped 0.6% on a monthly basis, following a 0.2% decline in December 2025.

The markets had estimated that the prices would rise 0.3% on a monthly basis.