ECB Monthly Bulletin, July 2004

The European Central Bank published its July 2004 Monthly Bulletin on 8 July. The high unemployment rate in the eurozone is likely to limit pressure for wage increases and thus prevent the recent rise in oil prices spilling over to other consumer prices through "second round" effects.

"The occurrence of second round effects... depends on whether the economic context, in particular the labour market situation, encourages higher wage claims, which is not the case at the current juncture," the ECB

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