A worker on the assembly line for the new Audi TT. Photo: Retuers/Laszlo Balogh

Producer prices for the euro zone fell 0.4% in May from a month prior, exceeding the 0.1% drop expected by economists surveyed by the Wall Street Journal. The measure was up 3.3% from May 2016.

The drop tracks other indicators which show that CPI will be modest in the near term as energy prices remain subdued. Data released on Friday showed the CPI had dropped to 1.3% in June, its lowest level of the year.