Industrial producer prices in the euro area decreased for the third consecutive month in October, and the rate of fall exceeded economists' expectations, latest data revealed Tuesday.

The producer price index for the domestic market dropped 1.4 percent year-on-year in October, statistical office Eurostat said. This followed declines of 0.9 percent each in August and September. Economists had expected prices to fall 1 percent in October.

Energy prices fall sharply by 3.6 percent, and intermediate goods prices recorded a 1.8 percent decline. Meanwhile, prices of capital goods and durable consumer goods increased 0.5 percent each.

The headline producer price index decreased a seasonally adjusted 0.5 percent compared to September, when they recorded a 0.2 percent increase, which was revised up from 0.1 percent. Expectations were for a 0.2 percent fall in October.

Among member states, the largest decreases were registered in Cyprus, Bulgaria, the Netherlands and Croatia. The biggest increases were recorded in in Estonia, Ireland, Denmark and Romania.

In the European Union (EU), overall producer prices dropped 1.1 percent annually in October, after falling 0.6 percent in September. Sequentially, prices decreased 0.6 percent, following the previous month's 0.1 percent increase.