However, for inflation rates to come down to levels below 2% in 2003, as currently projected by most forecasts, it is crucial that oil prices do not escalate and that wage moderation prevails. With respect to nominal wage growth, we have already noted an upward trend over recent years, which continued even when the economy started to slow down.
While the information from the latest wage  BIS Review 51/2002  1  indicators does not signal a further acceleration, wage developments remain a cause for concern, despite the weak cyclical situation. With regard to the devastating floods which have hit three member countries in particular, we deeply regret the substantial loss of life.