Friday, April 29, 2011

Euro-Zone Data Pressure ECB

Wall Street Journal
April 28, 2011

Euro-zone retail sales grew in April at a solid but slightly weaker rate than the previous month, but a pickup in wholesale inflation to a 33-month high showed price pressures continue to build in the single currency area, a survey by Markit showed Thursday.

The survey, which came a day before the release of official inflation data for April, is likely to fuel expectations the European Central Bank will tighten monetary policy further, even though it may make life harder for smaller debt-laden euro-zone member states.

Markit's euro-zone retail purchasing managers index eased to 52.2 in April from 53.5 in March, but remained above the long-term series average of 49.1. A reading above the neutral 50 level indicates growth compared with the previous month, while a reading below indicates a contraction.


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