However, thereby it will not be possible to avoid the income transfer from the commodity-importing countries to the commodity-exporting countries. In any case, we have to settle the higher oil bills. And we must also be aware that this change in relative prices limits our leeway for internal income redistribution. Companies and households have to adjust their behaviour accordingly.
Recently, we have been witnessing rising labour cost growth at annual rates not seen since the mid 1990ies. To some extent, this rise in wage pressure can be attributed to tighter labour markets and continued high capacity utilisation in parts of the euro area.