ECB says euro-area pay growth accelerates in second half
Updated
Updated · Bloomberg · May 6
ECB says euro-area pay growth accelerates in second half
7 articles · Updated · Bloomberg · May 6
The bank’s wage tracker forecasts annual salary growth of 2.6% in both the third and fourth quarters, above the pace expected in the first half of 2026.
The outlook matters as policymakers assess whether higher energy costs could spill into wages and strengthen the case for raising interest rates.
Even with the pickup, projected pay growth remains well below the euro area’s 2024 peak of more than 5%.
With real wages falling for years, will the ECB's next move finally help workers or push businesses over the edge?
As Middle East conflict dictates Europe's inflation, are the ECB's interest rate tools becoming obsolete?