PARIS (MktNews) - Eurozone wage pressures should remain under control this year, allowing lower oil prices to bring a decline in inflation, according to Raymond Douyere, member of Bank of France's advisory Monetary Policy Council.
"There are still wage pressures in the eurozone, but they are likely to remain contained this year," Douyere said in an exclusive interview with Market News international.
While wage pressures are strong in Spain and Ireland and wage negotiations will be tough in Germany, "French wage claims will be strong, but the outcome will be a reasonable increase in wages," he predicted.
After last year's EMU inflation boost from energy costs, "upward pressures from oil prices will be contained this year and inflation will even decline in months ahead," he predicted.
French inflation should decline toward the government's forecast of an average of 1.3%, he said. While French growth will be robust, there is little risk of overheating.