Euro zone producer prices fell more than expected in October, data showed on Tuesday, with the annual inflation rate at a nearly 4-year low in a fresh sign of a sharp fall in inflationary pressures.
Prices at factory gates in the 17 countries using the euro declined 0.5 percent in October against September, the EU's statistics office said on Monday, the first monthly decline in five months.
Economists polled by Reuters had forecast a decrease of 0.2 percent.
Changes in producer prices, unless absorbed by retailers, eventually translate into changes in the consumer price index, which the European Central Bank wants to keep below, but close to 2 percent. Consumer inflation was 0.9 percent year-on-year in November.