Euro zone PPI rises 0.2% in March

Producer price inflation in the euro zone rose for the second consecutive month in March, easing concerns over the threat of deflation, official data showed on Tuesday.

In a report, Eurostat said that its producer price increased by a seasonally adjusted 0.2% in March, compared to expectations for a gain of 0.3%. Producer prices rose 0.6% in February, whose figure was revised up from a previously reported gain of 0.5%.

Year-over-year, the producer price index declined at an annualized rate of 2.3% in March, in line with forecasts and following a drop of 2.8% in February.

EUR/USD was trading at 1.1098 from around 1.1099 ahead of the release of the data, while EUR/GBP was at 0.7338 from 0.7337 earlier.

Meanwhile, European stock markets remained broadly higher. The EURO STOXX 50 rose 0.5%, France’s CAC 40 advanced 0.65%, Germany's DAX tacked on 0.65%, while London’s FTSE 100 inched up 0.75%.