UK unemployment falls unexpectedly to 7.8 per cent

In the UK, the jobless rate fell unexpectedly for the three months ending in February as the number of people in work jumped.

The International Labour Organisation’s (ILO) unemployment rate index of 7.8%, versus 8% for the previous three months, came as a welcome sign to the UK government that firms are feeling more confident about hiring.

The number of people without a job on the broad ILO measure fell by 17,000 in the three-month period which ended February, to 2.480 million.

Inflation in the eurozone accelerated more than previously estimated and at the fastest rate in over two years due to surging energy costs in March.

In the 17-nation eurozone, inflation advanced to 2.7%, from 2.4% in February, adding pressure on the European Central Bank to continue raising interest rates beyond the current 1.25%. March’s figure was above initial estimates of 2.6% and is the highest level since October 2008.

Meanwhile, core inflation accelerated to 1.3% in March from 1% the previous month, the EU’s statistics office in Luxembourg said on Friday. That is the fastest since August 2009.

The cost of energy jumped 13% from a year earlier, while alcohol and tobacco was 3.6% more expensive.

In the US, industrial production increased by 0.8% in March, which was more than analysts’ expectations of 0.6%, and 0.7% higher than the revised figure of 0.1% in February.

A separate report showed that consumer prices rose 0.5% for the month of March, with higher gas and food costs accounting for three-quarters of the rise.

Core prices, which strip out volatile food and energy costs, rose by 0.1%.

This article has been prepared by Bank of Valletta plc for general information purposes only.