Economics
European Consumers Should Expect Higher Prices for Everything From Flights to Paint
- Executives cite raw material costs, rising wages, good market
- Euro-area inflation just above ECB goal, sustainability is key
Photographer: Krisztian Bocsi/Bloomberg
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European companies are still finding ways to raise prices even as confidence weakens and the economy cools.
Businesses from airlines to manufacturers say they’ll probably need to act to protect profits as costs including wages rise. For the European Central Bank, a trend of stronger pay growth and inflation is just what it needs to support its decision to wean the economy slowly off stimulus.