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Euro zone PPI rises more-than-expected in January

Published 03/02/2011, 05:07 AM
EUR/USD
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Investing.com – Producer price inflation in the euro zone rose more-than-expected in January, official data showed on Wednesday.

In a report, Eurostat said that its producer price index rose by 1.5% in January, after rising by 0.8% in December.

Analysts had expected the producer price index to increase by 1.0% in January.

According to the data, the producer price index rose at an annualized rate of 6.1% in January, after advancing by 5.2% in December. Analysts expected year-on-year PPI to rise at an annualized rate of 5.6%.

The report showed that among euro zone member states, the highest increases in prices were recorded in Spain, the Netherlands and Portugal, while decreases were observed in Denmark and Sweden.

Following the release of the data the euro was up against the U.S. dollar, with EUR/USD climbing 0.16% to hit 1.3799.

Meanwhile, European stock markets were broadly lower. The FTSE 100 dropped 1.11%, the EURO STOXX 50 slumped 1.31%, France’s CAC 40 tumbled 1.06%, and Germany's DAX fell 1.26%.


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