The Maltese economy grew at an annual rate of 1.7% in the second quarter of this year after having grown by a revised 1.8% in the first quarter, the Central Bank said today.

The Bank reported in its Quarterly Review that price pressures in Malta eased during the review period. Annual HICP inflation declined to 1.4% in March from 2.8% in December. This primarily reflected weaker price increases of services and of non-energy industrial goods. Meanwhile, price pressures from energy and food also abated. The annual HICP inflation rate moderated further in the second quarter of 2013, decelerating to 0.6% in June.

First quarter indicators regarding competitiveness continued to show mixed results. Both the nominal and real harmonised competiveness indicators increased further, as a result of the appreciation of the euro. Growth in unit labour costs, measured as a four-quarter moving average, eased to 3.1% in the March quarter from 3.5% in the last quarter of 2012.

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