Eurozone Pay Growth Poised to Accelerate in Early 2027

The European Central Bank (ECB) has published its wage tracker, predicting that Eurozone pay growth will accelerate in early 2027. According to the ECB, salaries are expected to rise by an annual 2.7% in the first quarter of next year, after increasing 2.6% in the third and fourth quarters.

This is stronger than the projection for the first six months but still below the 5.2% peak reached in 2024. The ECB attributes this increase to the fading effect of one-off payments made in 2024.

Policymakers are tracking salaries closely, particularly as they try to prevent energy-price jumps from becoming a lasting cycle of higher wages and prices. Officials have kept borrowing costs on hold but are prepared to hike again unless inflation improves markedly.