Central Banks
Euro-Zone Wage Growth Picks Up in Inflation Warning to ECB
- Negotated pay rose 4.7% from a year ago in first quarter
- Officials focused on salaries as first interest-rate cut nears
Commuters in Paris.
Photographer: Zula Zabikowska/BloombergThis article is for subscribers only.
A key gauge of euro-area wages failed to slow at the start of 2024 — a warning sign to European Central Bank officials counting on a slowdown to maintain the retreat in inflation.
Negotiated pay increased 4.7% from a year ago in the first quarter, the ECB said Thursday. That’s up from 4.5% in the final three months of 2023 and matches a record set in the third quarter of last year. Most economists had anticipated a drop or a stable reading.