Lane: ECB sees large wage increases over next 2 years

EPA-EFE/ERIK S. LESSER

European Central Bank (ECB) Executive Board member Philip Lane said in his address at the the Bank of Lithuania's annual conference on Tuesday that wage increases in the euro area continue to exert upward pressure on inflation in the region. Lane revealed that, based on the central bank's projections, "fairly large" wage rises can be expected over the next two years.

In aggregate terms, wages in Europe are growing at roughly 5.5%, Lane pointed out, stressing that such a high rate of wage increases is not consistent with the central bank's 2% inflation target. According the ECB's estimates, the wage increases have reached their peak and are projected to decrease to around 4-4.5% next year and further to 3% in 2025.

Baha Breaking News (BBN) / AB