June 20, 2018 / 1:58 PM / 9 months ago

ECB's Draghi: forces holding back wage growth are waning

President of the European Central Bank Mario Draghi speaks during the news conference following the meeting of the Governing Council of the European Central Bank in Riga, Latvia June 14, 2018. REUTERS/Ints Kalnins

SINTRA, Portugal (Reuters) - The forces holding back wages in the euro zone are gradually waning and the European Central Bank is confident that inflation will continue to rise back toward its objective of almost 2 percent, ECB President Mario Draghi said on Wednesday.

Draghi said that labor costs are on an upward path, adding that he has found little evidence that electronic commerce is weighing on inflation.

Factors holding back inflation include labor market slack, low productivity, the retreat of labor unions, labor market reforms, an increase in the labor supply and workers’ demand stability over increased wages, Draghi said.

“We see that all these combined effects ... are gradually waning out, “ Draghi said.

Reporting by Balazs Koranyi; Editing by Francesco Canepa

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