ECB poll shows euro zone firms are scaling back price increases
According to a survey by the European Central Bank (ECB), eurozone companies are increasing their prices at a more modest rate due to stabilizing costs, cooling demand, and rising competition, although the rise in wages continues to be a concern.
The poll of 61 large eurozone companies from outside the financial sector revealed that the rate of selling price increases is moderating overall, with stabilizing non-labor input costs and supply-demand rebalancing cited as the main reasons.
However, service providers, who are more sensitive to labor costs, continue to anticipate strong price increases due to rising labor costs, with wages expected to increase by 5% this year. Conversely, companies selling consumer goods, particularly non-essential items, are finding it harder to increase prices