The link between labor cost and price inflation in the euro area

First, the US literature finds no conclusive results on whether empirically, labor costs tend to precede or follow prices. And second, studies suggest that the ...

We find a strong link between labor cost and price inflation in the four major economies of the euro area and across the three main sectors.

The Link between Labor Cost and Price Inflation in the Euro Area

This paper documents, for the first time in a systematic manner, the link between labor cost and price inflation in the euro area.

The changing link between labor cost and price inflation in the ...

Disclaimer: This paper should not be reported as representing the views of the European Central Bank. (ECB). The views expressed are those of the authors and do ...

Non-linearity between price inflation and labor costs - EconStor

De Luigi et al. (2019) explore eight Central, Eastern, and Southeastern European EU Member States. They find a positive relationship between labor costs and ...

The wage-price pass-through across sectors - SUERF

The link between wages and prices, the so-called wage-price pass-through, is a key ingredient to understand inflation developments.

What we know about the wage inflationary channel - CEPR

This column looks at pass-through from labour cost to price inflation for the US and euro area countries, and finds that the risk is state ...

Who bears the costs of inflation? Euro area households and the ...

Thus, real labor income losses may vary even across households experiencing the same inflation rate. Finally, prices of nominal and real assets held by ...

What caused the euro area post-pandemic inflation? An application ...

This implies that wages and prices in the euro area and the US economy respond quite differently to labour market shocks. Moving to price shocks ...

The wage-price pass-through across sectors: evidence from the ...

This paper studies the pass-through from wages to producer prices using sectoral disaggregated data for the euro area.

Europe's Inflation Outlook Depends on How Corporate Profits ...

Rising corporate profits account for almost half the increase in Europe's inflation over the past two years as companies increased prices by more than spiking ...

Determinants of Inflation in the Euro Area: The Role of Labor and ...

matching frictions and wage rigidity in the labor market, monopolistic competition in product markets and adjustment costs on pricing. 3 Andres, Ortega and ...

The link between labor cost inflation and price inflation in the Euro ...

To gauge inflationary pressures, policymakers generally pay close attention to labor cost developments. A key reason has been the widely held view that ...

Do Unit Labor Cost Drive Inflation in the Euro Area?

The purpose of this study is to analyze the relationship between unit labor costs and inflation. We estimate an optimal price path model based on a New ...

Profits, Wages and Inflationary Dynamics in the Euro Area and ... - LSE

Increases in unit labour costs are remarkably similar and coherent with the inflation targets. With a mean of 1.53 percent wage growth relative to productivity ...

Euro Area Labour Costs - Trading Economics

Hourly labor costs in the Euro Area rose by 4.7% year-on-year in the second quarter of 2024, slowing from a downwardly revised 5% increase in the previous ...

The euro area pandemic inflation: A tale of supply chains ... - CEPR

The initial increase in the Consumer Price Index (CPI) in 2021, which preceded the Russian invasion of Ukraine, resembles a textbook case of ' ...

Philip R Lane - The euro area outlook - some analytical considerations

energy prices will have implications for the future evolution of the labour ... temporary component in the current rate of goods inflation. The ...

Euro Area Inflation Rate - Trading Economics

The ECB expects inflation to rise again in the latter part of 2024, partly because previous sharp falls in energy prices will drop out of the annual rates.

Euro area Labor cost index, June, 2024 - data, chart

The most recent value is 115.9 index points as of Q2 2024, an increase compared to the previous value of 114.7 index points. Historically, the average for ...