The annual increase for February 1999 was reported to be 0.8%, the same as in the previous month. The current low inflation rate is partly due to substantial reductions in energy prices over the past half year, which have diminished somewhat very recently. Decreasing unit labour costs have also made a significant contribution.
In summary, the outlook for price stability remains favourable and, until now, we have not identified any significant upward or downward pressures on prices in the short term. On the downward side, the slowdown in the euro area economy is a cause for concern.