Frankfurt (Germany), 28 Sept. (LaPresse) – “So far, wages have not shown a significant response to the energy shock.” This was stated by ECB President Christine Lagarde in her address to the European Parliament’s Committee on Economic and Monetary Affairs. Compensation per employee, which measures nominal wage growth, stood at 3.3 per cent in the second quarter, down from 3.6 per cent in the first. “The outlook continues to be characterised by high uncertainty, with upside risks to inflation and downside risks to growth,” Lagarde emphasised. Headline inflation rose to 3.2% in August, up from 2.9% in July, whilst energy inflation accelerated to 14.3% from 10.3%. Core inflation, excluding energy and food, fell slightly to 2.4%. “Despite the difficulties arising from the energy shock, the euro area economy has shown resilience,” said the ECB President, pointing to the “solid growth in real GDP” recorded in the second quarter. This growth, she noted, “was widespread across most countries and sectors. We expect this trend to have continued in the third quarter.”
ECB, Lagarde: “No response in wages to energy shock, outlook uncertain”
Frankfurt (Germany), 28 Sept. (LaPresse) – “So far, wages have not shown a significant response to the energy shock.” This was stated by ECB President Christine Lagarde in her address to the European Parliament’s Committee on Economic and Monetary Affairs. Compensation per employee, which measures nominal wage growth, stood at 3.3 per cent in the second quarter, down from 3.6 per cent in the first. “The outlook continues to be characterised by high uncertainty, with upside risks to inflation and downside risks to growth,” Lagarde emphasised. Headline inflation rose to 3.2% in August, up from 2.9% in July, whilst energy inflation accelerated to 14.3% from 10.3%. Core inflation, excluding energy and food, fell slightly to 2.4%. “Despite the difficulties arising from the energy shock, the euro area economy has shown resilience,” said the ECB President, pointing to the “solid growth in real GDP” recorded in the second quarter. This growth, she noted, “was widespread across most countries and sectors. We expect this trend to have continued in the third quarter.”