European inflation data just dropped for September, and the producer price index is showing interesting moves.

On a monthly basis, PPI came in at -0.1%, missing the flat 0.0% forecast. That's actually an improvement from August's -0.4% decline, so the deflationary pressure is easing slightly.

Year-over-year numbers tell a similar story. PPI landed at -0.2%, right in line with expectations but still better than last month's -0.6%. We're seeing deflation slow down, though producer prices remain in negative territory.

What does this mean? Producer costs are still falling, but the pace is moderating. Worth watching how this filters through to consumer prices and monetary policy decisions in the coming months.