Consumer prices in the United States rose by 0.2 per cent in February, in line with economists’ expectations. The news alleviated market worries that inflation is about to accelerate.

On a year-over-year basis, the consumer price index (CPI) rose by 2.2 per cent, marginally above the 2.1 per cent increase reported in January. Excluding volatile items like food and energy prices, the CPI rose by 0.2 per cent for the month and 1.8 per cent annualised, unchanged from the previous month.

A decline in energy prices helped keep a lid on inflation. Energy prices overall gained just 0.1 per cent. In the meantime, new car prices fell by 0.5 per cent, the biggest monthly decline since August 2009.

Meanwhile, employment in the eurozone grew at a slower rate in the three months ended December, data from Eurostat showed last week. Employment rose by 0.3 per cent sequentially in the fourth quarter, just below the 0.4 per cent pace registered in the third quarter. There were 156.7 million employed in the currency bloc, the highest employment level ever recorded. On an annual basis, employment growth eased slightly to 1.6 per cent during the review quarter, from 1.7 per cent in the previous quarter. On the other hand, in the European Union as a whole, employment increased by 0.2 per cent on the previous quarter and by 1.5 per cent compared to the same period last year.

Finally, consumer prices in Germany were 1.4 per cent higher in February 2018 compared with February 2017, according to the country’s Federal Statistical Office. This means that the inflation rate, as measured by the CPI, decreased for the third consecutive month. In January 2018, it had been 1.6 per cent. Compared with January 2018, February’s CPI rose by 0.5 per cent in February. Energy prices rose only 0.1 per cent and had a downward effect on overall inflation.

This report was compiled by Bank of Valletta for general information purposes only.