Investing.com - Producer price inflation in the euro zone fell more than expected in January, 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 0.9%, compared to expectations for a drop of 0.7%. Producer prices fell 1.0% in December.
Year-over-year, the producer price index declined at an annualized rate of 3.4% in January, below forecasts for a drop of 3.0%. Prices fell at a rate of 2.6% in December.
EUR/USD was trading at 1.1169 from around 1.1174 ahead of the release of the data, while EUR/GBP was at 0.7268 from 0.7270 earlier.
Meanwhile, European stock markets remained modestly higher. The Euro Stoxx 50 rose 0.15%, France’s CAC 40 advanced 0.25%, Germany's DAX tacked on 0.2%, while London’s FTSE 100 inched up 0.2%.