TELETRADER News
3/24, 11:00 AM
(Source: TeleTrader)
ECB's Nagel: Wage growth pushes inflation rate
Member of the European Central Bank (ECB) Governing Council and Bundesbank President Joachim Nagel stated on Friday that high inflation is largely under the influence of rapid wage growth.
The banker restated his previous assessment that wages continue to rise across the Eurozone, adding that pay developments will possibly prolong "the prevailing period of high inflation rates."
"Inflation will become more persistent," Nagel remarked on the trend in a lecture in Edinburgh, noting that labor shortages have an adverse effect on production, giving more power to unions to negotiate higher wages.