Eurozone wages have risen at their fastest rate since the 1990s, according to data published by the European Central Bank that could complicate policymakers’ plans for more interest rate cuts.
Negotiated wages jumped 5.4 per cent in the three months to September compared with the year-ago period, up from an annual rise of 3.5 per cent in the previous quarter, the European Central Bank said on Wednesday. It was the biggest increase since 1993, six years before the euro was launched.
Growth in wage deals is closely watched by monetary policymakers as a signal of persistent inflationary pressures. The ECB had expected a pick-up in negotiated wage growth during the second half of this year, mostly due to one-off agreements in Germany, the EU’s largest economy.