ECB’s Lane: No Significant Wage Response to Energy Shock Yet

Lane's point is about the second-round effects that central bankers fear most: an energy price spike embedding itself into wages and services costs. Absence of a significant wage response so far gives the ECB room to treat the shock as a level effect rather than a persistent inflation driver, which matters for how long restrictive policy needs to stay in place. The open question is whether that restraint holds if energy costs stay elevated, since wage bargaining typically lags the initial price move.