Reported 7 months ago
German wages surged by 6.2% in the first quarter of 2024, surpassing analyst estimates, as reported by the Bundesbank. This unexpected rise in wages poses a challenge for the European Central Bank as it evaluates whether inflation is slowing enough to lower interest rates. The concern is that the strong wage growth in Germany could delay the return of inflation to the ECB's 2% target, potentially impacting the planned rate cuts. Despite signs of economic improvement, the Bundesbank cautioned that a sustained industrial recovery may not be seen until the second half of the year due to weak demand in manufacturing and construction sectors.
Source: YAHOO