FRANKFURT, May 5 (Reuters) - Euro zone companies are
raising prices at a more moderate pace as their costs stabilise,
demand cools and competition mounts, although growing wages
remain a concern, according to a European Central Bank survey
published on Friday.
The ECB slowed the pace of its interest rate increases on
Thursday but signalled more tightening to come in what markets
expect to be the final stage of its fight against inflation. The central bank's latest poll of 61 large euro zone
companies from outside the financial sector may give it some
comfort, with companies reporting slower price growth, albeit
with differences among sectors.
"The rate of increase in selling prices was said to be
moderating overall, broadly as anticipated at the beginning of
the year," the ECB said.
"To a large extent, this moderation reflected stabilising
non-labour input costs and the rebalancing of supply and demand
for many goods since last summer."
Labour costs were rising, with wages expected to rise by 5%
this year -- unchanged from the previous survey round in
February.
This meant that service providers, which are particularly
sensitive to labour costs, continued to anticipate strong price
hikes.
By contrast, companies that sell consumer goods,
particularly non-essential ones, saw price hikes "becoming more
difficult".
(Reporting By Francesco Canepa
Editing by Balazs Koranyi)
Messaging: francesco.canepa.thomsonreuters.com@reuters.net))
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