Investing.com - Producer price inflation in the euro zone fell for the second consecutive month in August, underlining concerns over the threat of deflation, official data showed on Thursday.
In a report, Eurostat said that its producer price index eased down by a seasonally adjusted 0.1% in August, compared to expectations for a decline of 0.2%. Producer prices inched down 0.2% in July.
Year-over-year, the producer price index declined at an annualized rate of 1.4% in August, worse than forecasts for a drop of 1.2%. Prices fell at a rate of 1.3% in July.
EUR/USD was trading at 1.2640 from around 1.2644 ahead of the release of the data, while EUR/GBP was at 0.7812 from 0.7815 earlier.
Meanwhile, European stock markets remained lower. The DJ Euro Stoxx 50 fell 0.7%, France’s CAC 40 shed 0.5%, Germany's DAX dipped 0.4%, while London’s FTSE 100 inched down 0.5%.