ECB council member Madis Muller warns over the impact of wage increases on inflation.

Mr Muller stated that quickening wage increases pose a key threat to the euro-area inflation outlook.

“If wage rises — which have accelerated in the euro area — remain so fast, then maybe the decline in core inflation will be slower than currently forecast,” Mr Muller said. That “could also mean that getting inflation firmly anchored to 2% over the medium term could also become more complicated,” Muller said. “That’s something we need to follow.”

While policymakers including Mr Muller are reluctant to discuss what may happen after another expected rate increase in July, others warn that hikes may still be needed come the following meeting, in September.


Collection & Use of Personal Information

By submitting your data, you are providing us with some level of personal information. This information is not stored on our website database. However, in order to respond to your enquiry, your data is emailed to our website email address where it is saved. Additionally, we may use your contact details to send you marketing material in the future. You may unsubscribe from any emails you receive following our first reply. We do not pass your data on to any third parties.