Inflation & Prices

ECB Says Euro-Zone Wage Growth Slowed in Fourth Quarter

  • Quarterly gauge of negotiated pay may ease inflation fears
  • Policymakers are assessing when they can start cutting rates
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Negotiated pay in the euro zone rose 4.5% at the end of 2023, according to the European Central Bank — soothing fears that rising salaries could sustain inflation above the target.

While still high, fourth-quarter pay growth is down from a euro-area record of 4.7%, notched in the previous three months, the ECB’s negotiated wage indicator showed Tuesday.