Link Securities | European Central Bank (ECB) chief economist, Ireland’s Philip Lane, said in a recent speech that there is still plenty of momentum in food prices and core inflation. He also noted that real wages have fallen as inflation has outpaced wages in recent years, but that he believes real wages will recover in the coming years. In this regard, Lane said that he sees wage inflation peaking this year, but that it may remain above average in the coming years. Finally, Lane said that disinflation comes from the unwinding of supply chain bottlenecks and overcoming the energy shock.
Philip Lane (ECB) says still “plenty of momentum in food prices”
