This monthly PPI decrease is in line with market expectations of a fall to 0.1%.
The core PPI, which excludes products with prices that tend to be volatile such as food and energy, remained unchanged at 0.5% for the final two months of last year.
In yearly terms, the PPI grew to 4.4% between December 2009 and December 2008. Analysts had expected a similar increase from November's year-over-year rate of 2.4%.
The annual core PPI fell to 1.0% in December from 1.2% the previous month as the market had predicted.