BERLIN, Oct 14 (Reuters) – Rising inflation in Germany calls for “clearly noticeable real wage increases”, the chairman of companies sector commerce union Verdi mentioned in feedback launched on Thursday.
German inflation accelerated in September to 4.1%, its highest since December 1993, pushed up by vitality and meals prices.
“Since the price jumps for food, energy and petrol, for example, affect people with lower and middle incomes in particular, our wage demands include minimum amounts so that wage increases have an above-average effect on these workers,” Verdi chairman Frank Werneke informed media group RedaktionsNetzwerk Deutschland.
Economists are trying for indicators that larger inflation expectations will result in larger wage will increase which may kick off a wage-price spiral, driving inflation larger nonetheless and eroding households’ buying energy additional.
The European Central Bank is carefully watching inflation expectations and wage developments within the euro zone and likewise Germany, the bloc’s largest economic system. learn extra