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FRANKFURT, June 17: Wage rises in some eurozone countries may help to explain differences in inflation rates within the 12 nation region, European Central Bank President Jean-Claude Trichet said on Friday.
Giving the closing remarks at an ECB workshop on the impact of monetary union on the euro area, Trichet said inflation rate gaps were a natural feature of monetary unions and helped adjust relative prices in the face of differing levels of domestic demand or external shocks.
He said eurozone inflation differentials were not large either compared to past divergence or compared to the United States.—Reuters
