vice president European Central Bank (ECB) Luis de Guindos on February 9 warned labor unions to avoid making excessive wage demands, as this might increase inflation.
According to Mr. De Guindos, the reason why workers claim salary increase This is due to the sharp rise in consumer prices, but the wage-price spiral is something to avoid. He said inflation will decrease this year, at an average of regarding 6%, of which in the fourth quarter it will be 3.6%.
Mr. De Guindos said that the wage-price spiral, with rising wages pulling up production costs, thereby increasing prices further, is not in anyone’s interest.
He recommended that governments in the euro area need targeted support measures to support those most affected by inflation.
[Vận tải đường sắt tại Anh bị gián đoạn nghiêm trọng do đình công]
As workers ease their demands for wage increases, the ECB won’t have to tighten monetary policy too hard.
The ECB has raised interest rates by 3 percentage points since July 2022 to cool inflation, which has risen sharply following the conflict between Russia and Ukraine.
Inflationary in Eurozone has eased from the 10.6% peak recorded in October 2022, thanks in part to falling energy prices.
Inflation in the region fell to 8.5% in January 2023, still much higher than the 2% target.
Le Minh (VNA/Vietnam+)