East Europe on Alert to Old Foe as Wages Jolt Central Banks

  • Poland’s average wage growth stays near 4-year high in August
  • Morgan Stanley says inflation risks on the rise across region

An employee drives a forklift in the storage warehouse at the Hempel A/S coatings manufacturing facility in Buk, Poland, on Tuesday, July 5, 2016.

Photographer: Bartek Sadowski/Bloomberg

Like central banks elsewhere, policy makers in eastern Europe haven’t been too adept at fighting deflation. A burst of wage growth suggests they may not have to worry about that much longer.

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