Central Banks
ECB’s Lane Says Wage Growth Set to Ease Significantly Next Year
- ‘Catch-up is peaking now,’ Lane tells conference in Frankfurt
- Chief economist speaks two weeks before ECB next sets rates
An employee at a factory, in Esslingen, Germany.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
Pay growth for workers in the euro zone — a key driver of inflation — will slow sharply in 2025 and 2026, according to European Central Bank Chief Economist Philip Lane.
The second half of this year will still see “plenty of wage increases,” Lane told a conference Thursday in Frankfurt, citing the ECB’s own tracker of salary trends. But “the catch-up is peaking now” and there’ll be a much less rapid pace in the next two years, he said.