More expensive energy boosted prices at factory gates in the euro zone by more than expected in October versus the previous month, data showed today.
Producer prices in the 16-country area rose 0.2 per cent against September and were down 6.7 per cent year-on-year, European Union statistics office Eurostat said.
Economists polled by Reuters had on average expected unchanged prices in monthly terms and a fall of 6.8 per cent year-on-year.
The Eurostat data showed energy costs rose 1.0 per cent month-on-month while prices of intermediate and non-durable consumer goods fell 0.1 per cent and 0.3 per cent respectively.
Durable consumer goods and capital goods remained unchanged month-on-month. Producer prices are important to the European Central Bank because they show inflationary pressure, or the reverse, early in the pipeline.
The ECB, which meets to decide on interest rates on Thursday, wants annual consumer price inflation to be just below 2 per cent, but it was at 0.6 per cent in November.
Economists generally expect the central bank to keep its main interest rate unchanged at a record low of 1 per cent until the third quarter of next year.