ECB's Lane: Wages will be the primary driver of inflation over the coming years

Remarks by ECB chief economist, Philip Lane

Staggered nature of wage setting means that adjustment of nominal wages to the cumulative increase in cost of living will play out over several years
Even after energy and pandemic factors fade, wage inflation will be a primary driver of prices in the next several years

With higher interest rates and the inflation pinch now, what Lane is presenting is what should happen. But let's not get ahead of ourselves and see how things go in the meantime. Baby steps.