(Bloomberg) -- European Central Bank Chief Economist Philip Lane said rising incomes will help drive economic growth in Europe.
The “balancing act” is ensuring that wage growth isn’t too strong and doesn’t cause inflation to accelerate, he told an event Thursday evening near Florence, Italy.
ECB policy makers are watching developments in salaries to make sure soaring inflation doesn’t trigger a wage-price spiral. While headline inflation eased last month for the first time 1 1/2 years, workers’ pay is expected to only catch up over time, fueling upward price pressures for some time yet.
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