Panetta Says ECB Must Avoid Wage-Price Spiral Spurred by War

European Central Bank Governing Council member Fabio Panetta said that officials mustn’t let war-driven inflation stoke wages, while cautioning against too strong a response.

In comments on Tuesday in Rome, the Bank of Italy governor told his institution’s annual meeting of shareholders that fallout from the Iran crisis risks outlasting any hostilities currently gripping the Middle East.