The eurozone’s February PMI came in slightly hotter than expected this morning, increasing 0.8% month-over-month, according to eurostat. But the January PPI number that once seemed so hot has now been revised down from 1.5% to 1.3% month-over-month.
The story remains that higher energy prices are driving producer price inflation, with a 1.2% month-over-month gain for energy.
Markets seem to believe that the downward revision for January may give Trichet and the ECB some doubts about their planned rate hike on April 7.
The euro has fallen slightly on the news.