ECB survey finds euro zone firms report limited second-round inflation and moderating wage growth
Updated
Updated · KFGO · Apr 27
ECB survey finds euro zone firms report limited second-round inflation and moderating wage growth
15 articles · Updated · KFGO · Apr 27
Over 10,000 firms expect one-year inflation at 3.0%, up from 2.6%, but three- and five-year expectations remain steady.
Wage growth expectations fall to 2.8% from 3.1%, despite energy-driven cost increases linked to the Iran war, with selling prices seen rising 3.5% and input costs 5.8%.
The survey eases concerns ahead of the ECB’s April 30 policy meeting, supporting views that interest rates will remain unchanged, as firms anticipate declining profits and a weaker labor market limits wage demands.
With prices soaring and growth falling, is Europe now spiraling into unavoidable stagflation?
Can the ECB's interest rate tools truly combat inflation driven by a distant war?
Are companies using the Iran war as cover to excessively raise their prices and profits?
How is the US Federal Reserve preparing for the economic shockwaves from the conflict?
As diplomacy fails, what is the international community's next move to end the Middle East war?
How is the world's 'largest energy crisis' reshaping the future of daily life?