By contrast, consumer confidence continues to present a favourable picture. The level of unemployment has remained more or less unchanged over the past few months. Recent price developments are consistent with price stability. The latest data on the Harmonised Index of Consumer Prices show that the downward movement of inflation has stopped.
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.