The Consumer Price Index (PDF) in the European Union fell slightly from 1.0% in December 2009 to 0.9% in January 2010, according to statistics released today. Analysts had expected the CPI measurement, a general reading of the cost of consumer goods, to remain level instead of indicating minor deflation.

The Producer Price Index (PDF) in the region rose from 0.1% in December 2009 to 0.7% in January 2010 as expectations has forecast (see above). The index measures the change in prices that sellers pay for products from industrial, commodity, and state-of-processing-based companies.

Italy

CPI remained level (PDF) at 0.1% from January to February even though it was expected to jump to 0.6%. The initial data is provisional. Italy was one of first countries to join the EU, and its economy has generally performed worse than the European average. Italy is still struggling since a 1% decline in GDP in 2008, the worst performance sine 1975.

Great Britain

The Construction Purchasing Manager’s Index (PMI) fell from 48.60 in December 2009 to 48.50 in January 2010. Analysts had expected an increase to 49.00.  The index measures the activity level of purchasing managers in the construction industry. A figure below 50 indicates a monthly contraction.

By: Samuel J. Scott