Economics
ECB’s Visco Doesn’t See ‘Excessive’ Wage Increases in Europe
- Policy makers must be ‘very careful’ on second-round effects
- Italian official says stagflation unlikely if war not too long
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European Central Bank Governing Council member Ignazio Visco said he isn’t seeing unreasonable boosts to euro-zone salaries -- despite consumers grappling with the fastest inflation since the common currency was created.
Visco, who also heads Italy’s central bank, said policy makers are alert to the danger of so-called second-round effects, where rising consumer prices trigger demands for higher pay, further fueling inflation. But, so far, upward pressure is muted.