Statements by the Chief Economist at the European Central Bank
Philip Lane, Chief Economist at the European Central Bank, said on Thursday that the ECB’s wage tracker index and feedback from companies show that wage pressures are easing and will continue to decline until next year and into 2026.
Lane said during a lecture in Naples, “The reason we think inflation will drop… next year is that this is the last year of high wage increases and wage increases will appear more normal.”
Companies directly surveyed by the ECB expect a significant slowdown in wage growth, which is more in line with figures that will allow the ECB to bring inflation down to its target of 2% by next year.
Lane added, “Compared to last year, when many (companies) expected wage increases of five or six (percent), they are now saying around three to four percent.”
