ECB’s Lane: Wages will be the primary driver of inflation over the coming years

European Central Bank (ECB) Chief Economist Philip Lane said on Friday, “wages will be the primary driver of inflation over the coming years.”

Key quotes

“Staggered nature of wage setting means that adjustment of nominal wages to the cumulative increase in cost of living will play out over several years.”

“Even after energy and pandemic factors fade, wage inflation will be a primary driver of prices in the next several years.”