Central Banks

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

Commuters in Stuttgart, Germany.

Photographer: Krisztian Bocsi/Bloomberg

Euro-area pay growth is set to accelerate in the second half, adding to the challenges the European Central Bank faces as war rages in the Middle East.

The ECB’s wage tracker predicts salaries will rise by an annual 2.5% in the third and 2.6% in the fourth quarter. That’s stronger than the projection for the first six months.