BRUSSELS (Reuters) - Labour costs in the euro zone rose at their slowest pace in four years in the second quarter in a sign that the bloc's indebted economies are becoming more competitive, while inflation in August remained low.

Nominal hourly labour costs in the 17 countries using the euro grew by 0.9 percent in the April-to-June period, following a 1.7 percent increase in the first quarter, the EU's statistics office Eurostat said on Monday.

Eurostat also said consumer prices in the euro zone edged up by 0.1 percent on the month in August, following a 0.5 percent drop in July. Annual consumer price inflation fell to 1.3 percent from 1.6 percent in July.

Inflation remains well below the European Central Bank's target of close but below 2 percent, warranting the bank's pledge to keep interest rates at current levels or lower for an extended period of time to help the recovery.

ECB President Mario Draghi said on Monday that the euro zone's economy, which ended its recession in the second quarter, remained "fragile" and unemployment was "still far too high".

In one positive sign, Ireland and Portugal, which are seeking to end their international financial aid programmes in the coming months, saw labour costs rising at a pace that was slower the bloc's average.

In Italy, labour costs slowed their rise to 0.6 percent from 2.5 percent in the first quarter.

Spain reported a 0.3 percent fall in labour costs.

In Germany, which produces more than half of the euro zone's exports, labour costs grew by 1.8 percent, down from the 3.7 percent jump in the first quarter.

In contrast, labour costs in France, the bloc's second largest economy, rose by 0.5 percent after 0.1 percent growth in the previous period.

(Reporting by Martin Santa; editing by Robin Emmott)

About News.net

Publishing Services International Limited (PSIL) is the publisher and operator of a worldwide network of online news sites dedicated to delivering fair, accurate and relevant reporting from a variety of the world’s most trusted sources – from the biggest cities to the smallest towns.

We deliver positive and powerful messages to our readers, providing up‑to‑the‑second news that matters to the individual.

Our promise is to serve communities and individuals worldwide, delivering information that hasn’t always been available to them. We will give them back a voice – a voice that’s empowering because it is theirs – and provide a platform to communicate between themselves and the world.

We believe people are not just generic demographics; they are individuals with their own preferences and curiosities. We are about understanding these individuals, listening to them, and serving them.

We are the new pioneering spirit of news – we’re not talking to everyone, we’re talking with every one.

If you want your news, your voice, your way, on your time – we’ve got news for you.

 

FAQs

Email

If you have any questions or concerns please email us on support@news.net

Phone

  • Australia, Toll Free 1-800-983-421
  • Hong Kong, Toll Free 800-906-187
  • Singapore, Toll Free 800-852-3871
  • USA/Canada, Toll Free 1-800-830-4132

Advertise With Us

Interested in being awesome?
Contact us by email or phone.

Cancel