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Interview with Luis de Guindos, Vice-President of the ECB
Wage cost data in Spain point to an increase of 4.7%. ECB President Christine Lagarde stated that domestic inflation is resisting and is largely predicated by wages. Do you think wage moderation is required to beat inflation? A year ago inflation was above 10% and now it is below 3%. Indicators of underlying inflation are also favourable, i.e. there is a clear downturn in inflation, basically because the supply and energy components that were having a negative impact have started to fade, and because monetary policy is taking effect. However, average wage growth in the euro area is over 5%, whereas productivity is ... (full story)