ECB’s de Guindos: Increasing Labour Costs a Risk to Inflation

4 December 2023

By Isabel Teles – FRANKFURT (Econostream) – European Central Bank Vice President Luis de Guindos on Monday said that labour costs were a risk to price stability.

Speaking at a conference in Madrid, de Guindos said, ‘Unit labour costs are increasing in Europe and that is one of the concerns regarding the future evolution of inflation.’

‘[W]e are seeing very big wage increases’, he said, warning that ‘central banks have to be cautious’ even if recent inflation data were positive.

‘We can’t declare victory’, he said.