Retail sales data for the eurozone showed that wholesale prices surged to nearly a three-year high as growth slowed, although widely varied unemployment figures for the region suggest that implementing a unified policy to contain price growth will be challenging, according to The Wall Street Journal. On Thursday, the Markit eurozone retail purchasing managers index was seen easing to 52.2 in April from 53.5 in the prior month, although the level is above the neutral reading of 50 as well as the long-term average of 49.1, suggesting that growth remains robust. The slower reading was consistent with a quarter-on-quarter increase of 0.4% for retail sales in the region.
The headline figure belied an increase in the value of purchases made by eurozone retailers for the six month in a row to reach the highest level since July 2008, which comes ahead of official inflation data that is expected to show ongoing above-target price growth. The pressure for policymakers at the European Central Bank will be increased by such findings, although the divergence between the trends of leading economies and debt-laden peripheral countries will make finding a single, appropriate policy response more difficult. A separate report out on Thursday showed German unemployment has neared a 20-year low, while Spain, Portugal, Greece and Ireland continue to face high levels of joblessness.
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