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Lipsey & Chrystal: Economics 11e

Chapter 18

Wage pressures are an important part of wage-price dynamics and underpin what is happening to the short-run aggregate supply curve.  Currently (early 2008) the most important country where wage pressures are important is Germany.  See for example:
Financial Times, 10 January 2008
search.ft.com/ftArticle?queryText=European+wage+talks%3A++German+unions+eye
+%E2%80%98juicy%E2%80%99+pay+round&y=7&aje=true&x=10&id=080110000128&ct=0  

The relevance of this for policy makers is covered in an adjoining article (which also links to Chapter 21):
Financial Times, 10 January 2008
search.ft.com/ftArticle?queryText=ECB%E2%80%99s
+pleas+for+restraint+at+odds+with+political+mood&y=6&aje=false&x=9&id=080110000158&ct=0

The following discusses how higher input prices (especially food and energy) are putting up inflation in the UK (these two stories also link to inflation stories in Chapters 21 and 24):
BBC, Tuesday, August 12, 2008
http://news.bbc.co.uk/1/hi/business/7555803.stm

But wage inflation had not picked up, at least until July 2008:
BBC, Thursday, July 3, 2008
http://news.bbc.co.uk/1/hi/business/7487133.stm