ECB Finds No Turning Point Yet for Wages in New Indicator

The euro area’s elevated wage growth — which is threatening to keep inflation higher for longer — has yet to reach an inflection point, according to a new indicator by the European Central Bank that’s meant to deliver such data in a speedy manner.

The assessment, presented Friday, is based on a wage tracker that the ECB developed together with national central banks to gain quicker insight into shifts in workers’ pay — a key factor in determining how soon to lower interest rates.