“Historically high wage growth, linked to tight labor markets and offsetting high inflation, will support core inflation over the projection horizon as it gradually returns to rates around our target”
Inflation in the eurozone will continue to fall, but underlying price pressures, driven by rapid nominal wage growth, will remain high for some time and will only slowly ease, European Central Bank President Christine Lagarde said on Friday.
“Historically high wage growth, related to tight labor markets and offsetting high inflation, will support core inflation over the projection horizon as it gradually returns to rates around our target,” Lagarde said in a statement at the spring meeting of the International Monetary Fund.
