NICOSIA, Oct 18 (Reuters) – There is currently no price-wage spiral in the eurozone, and the European Central Bank (ECB) still needs to raise interest rates to bring it under control. inflation, said Constantinos Herodotou, the governor of the central bank of Cyprus, on Tuesday.
According to him, the ECB must closely monitor the impact of inflation on wage growth even if for the moment there is no evidence that the rise in prices is sustainably fueling that of wages.
Inflation in the euro zone in the first estimate reached in September the record level of 10.0% over one year, a figure which should be confirmed by the final statistics expected on Wednesday.
The ECB, which has already increased its key rates by a total of 125 basis points since July, should raise them by another three-quarters of a point on October 27, according to money market expectations. (Report Michele Kambas; French version Claude Chendjou, edited by Sophie Louet)