Eurozone finance ministers raised concerns about rising inflation caused by surging oil and food prices when they met for a regular meeting here late Tuesday.
"Inflation is a major concern," Luxembourg Premier and Finance Minister Jean-Claude Juncker, who also heads the 15-nation euro group, told reporters on his way to the meeting.
Official figures showed annual inflation in the 15-nation bloc sharing the same currency euro remained high at 3.3 percent in April, exceeding the two-percent ceiling preferred by the European Central Bank to maintain price stability, although the price index eased from a 12-year record of 3.6 percent in March.
Juncker warned it was people on average incomes that are suffering increasingly as a result of higher oil and food prices, calling governments to take budgetary instruments, if they can, to help those low-income groups.
"Some governments, having already reached their mid-term (budgetary) objectives have some room for maneuver to accommodate low-income people," he said.
As living costs are rising, European labor unions recently made a stronger demand for better salaries.
Juncker insisted the pay raise should be contained in order to prevent a vicious cycle of further pushing up prices, the so-called second-round effect.
"Our ongoing message is that we don't want to have second-round effects," he said.
Addressing a press conference after the meeting, Juncker pointed out wage moderation does not mean no increase of salaries, but the pay raise should be line with advance of productivity.
Juncker's concern was shared by EU Economic and Monetary Affairs Commissioner Joaquin Almunia.
"For the weakest sector of our society, inflation is the main problem. They are suffering a loss of purchasing power, and must pay more for food and other necessary goods," he said.
But he pointed out the inflation peak for the euro zone just passed and he expected the inflation would ease soon.
"I hope in the second half of the year it will again come down," he said.
In its last set of economic forecasts, the European Commission projected a rise in inflation to 3.2 percent this year from 2.1 percent in 2007. Throughout this year, inflation in the euro zone was expected to climb to the climax in the first quarter and then begin to fall.
Source:Xinhua
|
Comment
Tell A Friend
Print Format
Save Article