Eurozone Wage Growth Slows to 2.44% Year-on-Year
The European Central Bank (ECB) has released figures showing that the growth rate of negotiated wages in the eurozone moderated in the second quarter of this year. According to the ECB, the year-on-year increase stood at 2.44%, which is below the 2.56% recorded in the first three months of the year.
This represents the smallest annual increase since the third quarter of last year, when it was limited to 1.95%. However, even though the current growth of negotiated wages remains far from the historical maximum of 5.55% recorded in the third quarter of 2024, Christine Lagarde noted that wage trackers and surveys indicate 'moderate wage growth' in the coming quarters.
The ECB's president emphasized the need to closely monitor how rising energy prices influence price and wage formation, inflation expectations, and the overall behavior of the economy. The bank had previously projected an increase of 2.3% in 2026 and 2.7% in the first quarter of 2027.