Reported 5 months ago
Euro-zone wage growth in the first quarter of 2024 increased to 4.7% year-on-year, contradicting expectations of a slowdown and serving as a warning to the European Central Bank about potential inflation risks. The increase in negotiated pay, particularly in Germany where wages rose by 6.2%, has raised concerns about the impact on inflation and the ECB's plans to lower interest rates. Despite some moderation expected in wage pressures for the rest of the year, policymakers remain cautious as stronger economic activity and rising wages could limit the ECB's ability to implement further rate cuts beyond June.
Source: YAHOO