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German producer prices fall 3% y/y in January

Published by Global Banking & Finance Review®

Posted on February 20, 2026

1 min read

Last updated: February 20, 2026

German producer prices fall 3% y/y in January - Finance news and analysis from Global Banking & Finance Review

Tags:Economy

Quick Summary

Germany’s producer prices fell 3% y/y in January, exceeding forecasts for a 2.1% decline. The Destatis reading signals easing cost pressures that could influence eurozone inflation and ECB policy.

Germany's Producer Prices Drop 3% YoY in January, Exceeding Forecasts

January PPI Drop and Market Expectations

Feb 20 (Reuters) - German producer prices fell more than expected in January, decreasing by 3% on the year, the federal statistics office reported on Friday.

Actual Decline vs Forecast

Analysts polled by Reuters had expected a 2.1% decline.

Detailed Data Available Online

Source: Federal Statistics Office

The office publishes more detailed data on its website.

Reporting and Attribution

(Reporting by Emanuele Berro and Ozan ErgenayEditing by Ludwig Burger)

Key Takeaways

•German producer prices declined 3% year-on-year in January, a larger fall than anticipated.
•A Reuters poll had pointed to a 2.1% annual drop, so the print beat expectations.
•Figures come from Germany’s federal statistics office (Destatis).
•Move points to easing factory‑gate inflation and potential relief in input costs.
•Detailed breakdowns are available on Destatis’ website for sector-level insights.

Frequently Asked Questions about German producer prices fall 3% y/y in January

1What is the main topic?

Germany’s federal statistics office reported a 3% year‑on‑year fall in producer prices for January, a steeper decline than analysts expected.

2Why does the producer price index (PPI) matter?

PPI tracks factory‑gate prices and signals pipeline inflation. A larger‑than‑expected drop can point to easing cost pressures for businesses and potentially softer consumer inflation ahead.

3How did the result compare with forecasts?

Analysts surveyed by Reuters had expected a 2.1% annual decline, so the 3% fall was a bigger drop than predicted.

January PPI Drop and Market Expectations

Feb 20 (Reuters) - German producer prices fell more than expected in January, decreasing by 3% on the year, the federal statistics office reported on Friday.

Actual Decline vs Forecast

Analysts polled by Reuters had expected a 2.1% decline.

Detailed Data Available Online

Source: Federal Statistics Office

The office publishes more detailed data on its website.

Reporting and Attribution

(Reporting by Emanuele Berro and Ozan ErgenayEditing by Ludwig Burger)

Key Takeaways

•German producer prices declined 3% year-on-year in January, a larger fall than anticipated.

•A Reuters poll had pointed to a 2.1% annual drop, so the print beat expectations.

•Figures come from Germany’s federal statistics office (Destatis).

•Move points to easing factory‑gate inflation and potential relief in input costs.

•Detailed breakdowns are available on Destatis’ website for sector-level insights.

Frequently Asked Questions

1What is the main topic?

Germany’s federal statistics office reported a 3% year‑on‑year fall in producer prices for January, a steeper decline than analysts expected.

2Why does the producer price index (PPI) matter?

PPI tracks factory‑gate prices and signals pipeline inflation. A larger‑than‑expected drop can point to easing cost pressures for businesses and potentially softer consumer inflation ahead.

3How did the result compare with forecasts?

Analysts surveyed by Reuters had expected a 2.1% annual decline, so the 3% fall was a bigger drop than predicted.