Producer prices in the eurozone fell by 4.2 percent in May compared to the same month last year. Compared to the previous month, producer prices fell by 0.2 percent in May.
The decline was unexpectedly large. Analysts had on average expected a decline of 0.1 percent for producer prices in May compared to the previous month.
Energy prices pulled down, with a drop of 11.4 percent year-on-year and 1.1 percent compared to April.
Lower producer prices constitute a factor that reduces the upward pressure on inflation.
The figures come after a purchasing managers' index for the eurozone's service sector fell back to 52.8 in June, down from 53.2 in May. An index value above 50 indicates increased activity in the sector.
This means a composite index – which also includes the manufacturing industry – of 50.9 in June. The composite index was 52.2 in May.
