Central Banks
Euro-Zone Companies Expect Wage Growth to Moderate, ECB Says
Workers’ pay is a key variable for ECB officials as they decide how soon and how quickly to lower interest rates.
Photographer: Krisztian Bocsi/Bloomberg
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Companies in the euro area expect wage growth to slow, according to a poll by the European Central Bank, offering policymakers some comfort that inflation is safely in retreat.
Salaries are seen rising 3.8% over the next 12 months, the ECB said Monday in its Survey on the Access to Finance of Enterprises. That’s down from 4.5% in the previous poll in November. Selling-price expectations fell even more strongly — to 3.3% from 4.5%.