As a number of temporary measures introduced to fight high inflation, such as the German nine-euro public transport ticket, are set to expire, it is unrealistic to assume that core inflation has peaked. 2  10.0  Figure 2.
Indeed, the labor markets bear especially careful watching for signs that such a process is under way. So far this year, the demand for labor has stayed strong. Payroll employment grew briskly in January and February, and the unemployment rate remained around 5¼ percent -- roughly matching the low of the last cyclical upswing, in the late 1980s.