The terms of trade, which represents the ratio between export prices and import prices, has weakened rapidly this year, in fact falling to a historic low. This is impoverishing the national economies of the euro area: income from exports can buy fewer imported goods than before. [Slide 6.
Wage inflation has long been moderate but has risen in 2022] The demand for labour has grown and, more generally, a high proportion of production capacity in the euro area is being utilised. This is also evident as an accelerated rise in wages since the start of this year. There are, of course, large differences in this between countries in the euro area.