What if wages began to steadily establish inflation across the landscape after energy price increases subsided? This is the black scenario that the central bankers have their eyes on. The specter of the price-wage spiral. an increase in the former encourages increased demands for the latter, which, in turn, puts companies at risk of raising prices again. If this “ring” is still not working in Europe, a wage hike seems inevitable to restore the purchasing power lost due to the euro zone’s average inflation of 10.6% last month. “The risks of the “second stage” impact on wages have increased.” HSBC economists confirmed in a study.
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The European Central Bank’s (ECB) chief economist addressed the issue in a very detailed blog post on the institution’s website on Friday. According to Philip Lane, a pay rise that is not in line with…
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Source: Le Figaro
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.