Italian economy's solidity will help wages recover in 2027-28 - ECB's Lane tells ANSA

What happened: ECB Chief Economist Philip Lane told ANSA that the resilience of the Italian economy should allow wages in Italy to recover over the next two years, with inflation linked to the Iran war currently eroding household purchasing power. Key numbers: Lane Why it matters: Lane said the strong performance of the Italian economy should allow real wages and living standards to improve next year and the year after. He added that income support in the 2027 budget law should be well targeted, since broad fiscal stimulus would boost aggregate demand and slow the return of inflation to 2%.

ECB Chief Economist Philip Lane told ANSA that the resilience of the Italian economy should allow wages in Italy to recover over the next two years, with inflation linked to the Iran war currently eroding household purchasing power.

Lane said the strong performance of the Italian economy should allow real wages and living standards to improve next year and the year after. He added that income support in the 2027 budget law should be well targeted, since broad fiscal stimulus would boost aggregate demand and slow the return of inflation to 2%.