'We would not stand idly by': Lagarde pledges ECB action if both profits and wages rise

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'We would not stand idly by': Lagarde pledges ECB action if both profits and wages rise
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There are concerns that some companies are increasing their prices more than is needed to compensate for higher costs, thereby boosting their profit margins.

" if there is a simultaneous increase in profits and wages given persistently high inflation in the region.

"The recent period of high inflation was not accompanied by a reduction in firms' profit margins, which even increased in some cases, particularly when demand for goods and services outstripped supply.

Central banks have been paying increasing attention to this issue amid fears that companies are taking advantage of higher prices and fueling inflationary pressures further. Data from theshowed in June that half of the increase in European inflation over the last two years was due to higher corporate profits.

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