The wages in the Baltics were indeed very stagnant till now. Hence, many people immigrated, especially youth.

But the relation between wages and inflations seems to be too straight to be true - just when the wages started to raise, inflation kicks in. It may look that the Baltic states are more ruthless to regular folks than Bernanke's rate cuts. What does the asset inflation then mean? Does it accumulate wide inflation in the future, or does not play a role at all?