Euro zone wage growth slows providing ECB relief
Euro zone wage growth slowed further in the second quarter while inflation ticked up. Negotiated contracts signal only mild increases ahead, offering relief to the ECB.
Euro zone wage growth slowed to 3.1% in the second quarter as inflation persisted, giving central bank policymakers room to keep policy settings steady. The reading follows a peak above 5% during the 2022/23 inflation crisis, according to data from Eurostat on Wednesday. The deceleration eases fears of a wage-price spiral that could force aggressive policy tightening.
