Companies in the eurozone are raising prices at a more moderate pace as their costs stabilize, demand eases and competition increases, although wage increases remain a cause for concern, according to a survey published by the European Central Bank (ECB).

The European Central Bank raised its benchmark interest rate by 25 basis points on Thursday and indicated that it would tighten monetary policy to counter inflation, Agerpres reported.

The survey of 61 large companies in the euro zone, outside the financial sector, could be cause for relaxation for the ECB, as companies reported slower price growth, although there were differences between sectors.

“The rate of growth of selling prices has generally slowed down, as we predicted at the beginning of the year. To a large extent, this moderation reflects the stabilization of production costs and the restoration of the balance between supply and demand,” the Frankfurt institution said.

Labor costs are rising, with wages expected to rise 5% this year, around the level estimated in February.

This means that service providers, which are particularly affected by labor costs, continue to expect significant price increases. In contrast, firms that sell consumer goods, especially non-essential goods, say that raising prices is “getting more difficult.”

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