Eurozone Wage Growth to Accelerate to 2.7% in Early 2027

The European Central Bank (ECB) has forecasted that wage growth in the eurozone will accelerate to an annual rate of 2.7% in the first quarter of 2027, according to a recent statement.

This projection is stronger than the forecast for the first six months but still well below the peak of 5.2% reached in 2024.

The ECB attributed this increase to the fading effect of one-off payments made in 2024, which are no longer influencing wage growth.

Policymakers are closely monitoring wages as they try to prevent rising energy prices from creating a sustained cycle of higher wages and prices, similar to what happened after Russia's invasion of Ukraine in 2022.