The producer prices in the Eurozone rose for the very first time since 2013, which shows that the stubbornly low inflation in the single currency bloc might finally be gaining some momentum. The producer price inflation rose by 0.3 percent in November and up by 0.1 percent from a year ago. According to the figures released by the Eurostat earlier this week shows that the inflation rose at the fastest pace since 2013 and by 1.1 percent from a year ago.

European Monetary Union’s (EMU) largest economy, Germany saw its inflation rise by 1.7 percent in 2016, the strongest pace since July 2013 according to data released earlier this week. If this inflation proves to be sticky in the medium term, the European Central Bank (ECB) would really be in a tough position in explain to lawmakers, why they are choosing to buy additional €540 billion worth of bonds, when the current program of purchasing bonds at a pace of €80 billion per month expires in March this year.