The European Central Bank’s (ECB) chief economist, Philip Lane, said on Friday that “wage inflation will be the main driver in the coming years”.
“The layered nature of wage setting means that the adjustment of nominal wages to cumulative increases in the cost of living will take place over several years.
“Even after the energy and pandemic factors fade, wage inflation will be the main price driver for the next few years.”
“Long-term inflation expectations appear well anchored.”
Meantime, ECB Politician Madis Muller said it was “too risky to wait for a downturn and cool prices”.
EUR/USD remains above 1.0400 on Black Friday as US dollar weakness continues to dominate across all areas. The spot was up 0.19% on the day.