Investing.com - Producer price inflation in the euro zone fell more than expected in December, underlining concerns over the threat of deflation, official data showed on Tuesday.
In a report, Eurostat said that its producer price declined by a seasonally adjusted 1.0% in December, compared to expectations for a drop of 0.7%. Producer prices fell 0.3% in November.
Year-over-year, the producer price index declined at an annualized rate of 2.7% in December, below forecasts for a drop of 2.5%. Prices fell at a rate of 1.6% in November.
EUR/USD was trading at 1.1338 from around 1.1334 ahead of the release of the data, while EUR/GBP was at 0.7540 from 0.7547 earlier.
Meanwhile, European stock markets remained higher. The EURO STOXX 50 rose 1.55%, France’s CAC 40 advanced 1.25%, Germany's DAX tacked on 1.2%, while London’s FTSE 100 rallied 1.2%.