Euro Inflation 2.4%, Iceland Holds Rate; EU Car Registration Rises 0.9%

Arthi Gupta
16 Mar, 2011
New York City

Inflation in most of the euro nations climbed in February and Belgian trade deficit narrowed in January. Czech retail sales surged in January. Iceland retained key rate at 4.25%. Swiss investor confidence improved in March. New car registration in the EU increased 0.9% in February.

[R]2:15 PM Frankfurt – Inflation in most of the euro nations climbed in February and Belgian trade deficit narrowed in January. Czech retail sales surged in January. Iceland retained key rate at 4.25%. Swiss investor confidence improved in March. New car registration in the EU increased 0.9% in February.[/R]

Euro-zone Inflation, Labor Costs Climbs

Euro-zone inflation rose to 2.4% in February from 2.3% in January, Eurostat said on Wednesday, confirming a preliminary figure reported on March 1.

On a monthly basis, consumer prices rose 0.4% in February.

Inflation breached the European Central Bank''s target of “below but close to 2%” for the third straight month.

Euro-zone hourly labor costs rose 1.6% on a yearly basis in the fourth quarter of 2010 after a revised 0.9% rise in the third quarter, data released by Eurostat showed today.

In the EU27, labor costs rose 2% annually in the fourth quarter of 2010 following the 1.2% gain in the previous three months.

EU New Car Registrations Rise

New car registrations in the EU, excluding Cyprus and Malta, rose for the first time since March 2010, the European Automobile Manufacturers'' Association said.

Registrations increased 0.9% annually in February following a 1.4% decline in January. A total of 981,429 new cars were registered in the second month of the year.

Belgian Trade Deficit Narrows

Belgium''s foreign trade deficit narrowed to €0.5 billion in January from a revised €1.2 billion in December, preliminary data released by the central bank showed on Tuesday.

Exports rose 27.2% annually in January after gaining 11.5% in December. Imports increased 23.7% in January following an 11.8% climb in December.

In 2010, the country’s trade deficit narrowed significantly to €1.5 billion from €5.3 billion recorded in 2009.

Czech Retail Sales Surges

Retail sales in Czech Republic recovered strongly in January, driven by robust vehicle sales, which was the highest in the past three years, the Central Statistics Office said on Wednesday.

Retail sales, including sales and repair of motor vehicles, grew a seasonally unadjusted 6.8% annually in January, following a 0.2% fall in December.

Sales and repair of motor vehicles surged to a three-year high of 19.2% in January after a relatively moderate 7.9% growth in December.

Spanish Monthly Labor Cost Drops in Q4

Spain''s overall monthly labor cost per employee fell 0.3% in the fourth quarter of 2010 from the previous year, the statistics office INE said on Wednesday.

The labor cost in industries and construction rose 2.3% and 0.2%, respectively, while it fell 0.8% in services.

Austrian Inflation Up

Inflation in Austria rose to 3% in February from 2.4% in January, driven largely by higher costs of fuel and heating oil, Statistics Austria said on Wednesday.

Inflation, as measured by the harmonized index of consumer prices, rose to 3.1% in February from 2.5% in January. This was the highest rate since September 2008, the statistics office said.

Italy Inflation Accelerates

Italian consumer price inflation accelerated in February, led by higher utility and transportation prices.

The consumer price index rose 2.4% annually in February as against the 2.1% increase in January, statistics office Istat said Wednesday, confirming a preliminary report released on March 01. Inflation rose for a third straight month, data showed.

On a monthly basis, CPI increased 0.3 in February slower than a 0.4% rise in January.

Iceland Retains Key Rate

Iceland''s central bank on Wednesday decided to keep its benchmark seven-day collateralized lending rate unchanged at 4.25% after a quarter-point reduction in the previous meeting.

The bank retained other interest rates as well. The deposit rate remains at 3.25%, while the maximum bid rate for 28-day certificates of deposit was maintained at 4%. The overnight lending rate was also untouched at 5.25%.

Swiss Investor Confidence Improves

Swiss economic sentiment improved in March, survey results from the Centre for European Economic Research (ZEW) and Credit Suisse showed.

The Credit Suisse-ZEW indicator of economic sentiment rose 3.7 points to the minus 13.5 mark. The indicator assessing investor''s view of the current conditions rose 7.6 points to 67.6.