ECB’s Centeno: Real Wage Recovery Still Compatible with Inflation Target

25 May 2024

By Isabel Teles – FRANKFURT (Econostream) – European Central Bank Governing Council member Mário Centeno on Saturday said that the new wage growth data released by the ECB did not threaten price stability.

In an interview with Bloomberg, Centeno, who heads the Banco de Portugal, said, ‘I don’t read too much into 0.2 points above what we were expecting. This real-wage recovery is compatible with inflation converging to 2%.’

The drop in real wages would be reversed over time, at a pace yet to be determined, he said.

A continuation of growth figures was necessary in the euro area, he said.

‘Some recovery of the economy in the Eurozone will not jeopardize the disinflation process’, he said. ‘The recovery of productivity figures, which were not positive in the last couple of years, will help to secure the disinflation process.’