Central Banks
ECB’s Key Gauge of Euro-Area Pay Eased at End of 2023
- Pay per employee rose 4.6% on year in 4Q, down from 5.1% in 3Q
- Officials are watching wages closely before lowering rates
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A crucial gauge of wages in the euro zone slowed at the end of last year — offering further assurance to European Central Bank officials who are signaling that they may start lowering interest rates in June.
Compensation per employee rose by 4.6% from a year ago in the fourth quarter, down from 5.1% in the previous three months, ECB data showed Friday. The figures follow a similar slowdown in negotiated pay over the same period.