FRANKFURT -The European Central Bank risks losing sight of corporate profits as a driver of inflation – or 'greedflation' in market parlance – by zeroing in on wage growth which still lags far behind prices, economists said on Friday. ECB President Christine Lagarde singled out rising salaries as a prime cause for high growth in prices at her news conference on Thursday as she signaled at least one more interest rate increase by the euro zone's central bank. The renewed focus on the labor market – on which policymakers 'spent a lot of time' at their two-day meeting, Lagarde said – marked a pivot back for the ECB, which had been giving more prominence to the issue of high corporate margins in recent communication.

https://business.inquirer.net/406256/ecb-risks-losing-sight-of-greedflation-with-laser-focus-on-wages

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