HomeEconomyPrice-salary. the chase...

Price-salary. the chase continues

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

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