German Wage Growth Quickened at Year-End, Bundesbank Says

German wage growth quickened at the end of 2025, though recent agreements point to smaller salary increases ahead, according to the Bundesbank.

Fourth-quarter negotiated pay rose 3.4% from a year ago after more or less stagnating in the the previous three months, the central bank said Thursday in its monthly report. It stressed, however, that the move was largely due to base effects including inflation compensation bonuses and pay rises that took effect in summer 2024.