ECB Wage Tracker Points to Modest Pay Growth in Eurozone

The European Central Bank's (ECB) updated wage tracker indicates a modest uptick in negotiated pay growth for the first half of 2027. According to ECB data, negotiated wage growth is expected to hold at roughly 2.6-2.7% through the end of the first quarter of next year.

This slight increase follows broadly steady increases in negotiated wage growth for the rest of this year. The ECB's headline indicator suggests that pay pressures are stable yet slightly elevated, consistent with its own 2% inflation target framework.

The ECB is closely monitoring wage developments to assess whether the recent inflation surge is fueling undue pay demands. It considers wage growth figures around 3% as consistent with its 2% inflation target.