Producer prices in Germany declined 3.3% year-on-year February 2026, following a 3.0% drop in January, worse than market expectations of a 2.7% fall. This was the biggest fall since April 2024, mainly due to a sharper decline in energy costs (-12.5% vs 11.8% in January), notably natural gas (-14.3%) and electricity (-13.4%). Prices for capital goods (1.7% vs 1.8%), intermediate goods (1.1% vs 1.2%), and durable goods (2.0% vs 2.1%) rose at slower rates, while non-durable goods dropped further (-0.6% vs -0.2%). Excluding energy, producer prices increased by 1.0%, slowing from a 1.3% rise in the previous month. O a monthly basis, producer prices decreased 0.5%, after falling 0.6% in January, against market forecasts of a 0.3% rise.