Euro zone producer price inflation held steady in April at a level that was 2.6 percent higher than a year ago, Eurostat reported on Monday. Economists had expected a 0.2 percent increase and a year-over-year increase of 2.7 percent.

The PPI gained 0.5 percent in March and 3.5 percent, year over year. The slowdown was largely due to a 0.1 percent retreat in energy prices and 6.8 percent on the year, the lowest yearly increase since June 2010.

The decline in the cost of energy is expected to help keep consumer prices down as lower costs for production will be passed on the customers, helping ease inflation toward the European Central Bank's target of around 2 percent.