Euro area annual inflation down to 0.7%, 0.1% in Cyprus while labour costs increased by 5.0% in 2019

Euro area annual inflation is expected to be 0.7% in March 2020, down from 1.2% in February according to a flash estimate from Eurostat, the statistical office of the European Union. Looking at the main components of euro area inflation, food, alcohol and tobacco is expected to have the highest annual rate in March (2.4%, compared with 2.1% in February), followed by services (1.3%, compared with 1.6% in February), non-energy industrial goods (0.5%, stable compared with February) and energy (-4.3%, compared with -0.3% in February).

More specifically in Cyprus  inflations was 0.1% in March 2020, down from 1.0% in February 2020 and 1.1% in March 2019. In Greece inflation was 0.1% in March 2020, down from 0.4% in February 2020 and 1.0% in March 2019.

Meanwhile, in 2019, average hourly labour costs in the whole economy (excluding agriculture and public administration) were estimated to be €27.7 in the European Union of 27 Member States (EU) and €31.4 in the euro area.

In Greece the labour costs increased by 2.4% to €16.4. In Cyprus the increase was 5.0%, to €19.3 in 2019

The lowest hourly labour costs recorded in Bulgaria (€6.0), Romania (€7.7), Lithuania (€9.4), Hungary and Latvia (both €9.9), and the highest in Denmark (€44.7), Luxembourg (€41.6), Belgium (€40.5), France (€36.6), the Netherlands (€36.4), Sweden (€36.3), Germany (€35.6) and Austria (€34.7).

Hourly labour costs in industry were €28.1 in the EU and €34.1 in the euro area. In construction, they were €24.8 and €28.0, respectively. In services, hourly labour costs were €27.5 in the EU and €30.4 in the euro area. In the mainly non-business economy (excluding public administration), they were €28.4 and €31.8, respectively.

The share of non-wage costs in total labour costs for the whole economy was 25.1% in the EU and 25.6% in the euro area. It ranged from 5.3% in Lithuania to 32.9% in France.

In 2019, compared with previous year, hourly labour costs in the whole economy expressed in € rose by 2.9% in the EU and by 2.5% in the euro area. Within the euro area, the largest increases were recorded in Slovakia (+7.8%), Estonia (+7.7%), and Latvia (+7.4%). Hourly labour costs increased least in Malta (+1.0%) and Finland (+1.4%).

For Member States outside the euro area in 2019, the largest increases in hourly labour costs in the whole economy, expressed in national currency, were observed in Romania (+13.1%) and Bulgaria (+11.7%). They increased least in Denmark (+1.9%) and Sweden (+2.2%).

Source: Cyprus News Agency

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