Eurozone producer prices rise more than expected in March

Producer prices in the Eurozone rose more than expected in March, according to the latest data from Eurostat.

Prices rose 0.3% on the month versus economists’ expectations for a 0.1% increase and a 0.7% drop in February.

On a year-on-year basis, prices were down 4.1% compared with forecasts for a 4.3% decline.

Dennis de Jong, managing director at UFX.com, said: “Following yesterday’s uptick in Markit manufacturing data, ECB president Mario Draghi would have been hoping for a better result in today’s producer price index.

“The next seven weeks will be a huge test for the euro, culminating with a vote on the UK’s membership of the European Union, which is poised precariously on a knife edge.

“Draghi will know that a flagging Eurozone will make it more difficult for ‘Remain’ campaigners to successfully make an economic argument, and the potential impact of a UK exit on the currency could be stark. All eyes now turn to tomorrow’s retail sales figures to see if consumer’s wallets will save the day.”