Eurozone Industrial Production and German Inflation Figures Fail the EUR

After a relatively quiet economic calendar through the Asian session, the Eurozone economy was back in focus early the European open.

Finalized inflation figures from Germany and Spain also drew attention.

Inflation

In February, German consumer prices rose by 0.7%, which was in line with prelim figures. Consumer prices had risen by 0.8% in the month of January.

The annual rate of inflation picked up from 1.0% to 1.3%, which was also in line with prelim figures.

According to Destatis,

• Prices of goods (total) were up 1.0%, year-on-year.
• Energy prices rose by 0.3% after having fallen by 2.3% in January.
• Rising crude oil prices and a CO2 charge introduced in January contributed to the uptick. Motor fuel prices rose by 2.4%.
• Food prices increased by 1.4%, slowing from a 2.2% rise in January.
• Excluding energy, the rate of inflation would have been 1.4%.

For Spain, inflation figures were also in line with prelim. Inflation stalled in February, with the harmonized index for consumer prices falling by 0.1%, year-on-year.

Industrial Production

Industrial production across the Eurozone rose by 0.8% in January, reversing an upwardly revised 0.1% decline from December. Economists had forecast a more modest 0.2% rise.

According to Eurostat,

• Production of durable consumer goods rose by 0.8% and non-durable consumer goods by 0.6%.
• Energy and capital goods production both increased by 0.4%, with the production of intermediate goods rising by 0.3%.
• By member state, Luxembourg (+3.8%), Greece and France (both +3.4%) and Belgium (+3.1%) recorded the largest increases.
• Estonia and Latvia (both -1.5%), Portugal (-1.3%), and Spain (-0.7%) registered the largest declines.
• Compared with January 2020, industrial production increased by 0.1%.

Market Impact

Ahead of today’s stats, it was a bearish start for the EUR. Early in the day, the EUR had risen to a current day high $1.19885 before sliding to a pre-stat low $1.19112.

In response to the stats, the EUR rose to a post-stat high $1.19179 before falling to a current day low $1.19101.

At the time of writing, the EUR was down by 0.61% to $1.19111.

Next Up

U.S wholesale inflation figures for February and Michigan Consumer Sentiment and Expectation figures for March.