The Euro Zone economy grew by 0.8 percent in the first quarter of 2008 revised from 0.7%, on an annualized pace the economy grew by 2.2% inline with expectations and the previous estimate according to the Eurostat today.

Another report showed that producer price index rose in April by 0.8% up from the prior 0.7% rise and inline with median estimates, while compared with a year earlier prices rose 6.1% inline with expectations and up from the previous 5.7%.

The good news in the report was rising consumer spending as it rose 0.2% after dropping 0.1% in the last three months of 2007, the rising euro have been weighing down on the Euro Zone exports, yet at the same time it was able to limit the effects of rising food and energy prices to some degree.

Rising inflation remains the main threat for the ECB as they have stressed relentlessly that taming upside risks to inflation over the medium term was the bank's main priority, while the fact that growth in the 15-nation economy still haven