Euro-Zone Wage Growth to Pick Up in Second Half of Next Year

Pay growth in the euro area is set to accelerate in the latter half of next year, supporting the European Central Bank’s assessment that there’s currently no need to lower interest rates further.

The ECB’s wage tracker, published Friday, predicts salaries will rise by an annual 2.7% in the fourth quarter of 2026 after advancing 2.5% in the third. While that’s far below the peak of more than 5% in 2024, it’s quicker than the projection for the first six months of next year.