French October producer prices dropped 0.9% m/m, bringing the annual rate down to 4.3% y/y from 6.0% y/y in September. The drop over the month was mainly due to lower oil prices, with prices for energy products down 2.9% m/m. Data are in line with German reports of sharply lower producer prices and highlight that Euro-Zone inflation is coming down fast as oil prices recede. This increases the room for the ECB to maneuver.