Eurozone witnessing a slight rise in wage growth.
Eurozone wage growth edged up in the beginning months of the year, with negotiated wages increasing by 4.69% across the 20-country area during the initial quarter, following a 4.45% rise in the last quarter of 2021, the European Central Bank (ECB) revealed in Frankfurt on a Thursday.
The central bank views wage growth of roughly three percent as compatible with their long-term inflation goal of two percent. Anything surpassing this figure could signal inflationary pressures in the economy, potentially sparking a rise in prices.
The relatively high inflation rates experienced in the eurozone in recent times have resulted in significant losses of consumer purchasing power. To compensate for this, unions in several countries have tabled ambitious wage demands during collective bargaining sessions. The most recent wage growth statistics imply that the ECB might be proceeding with caution regarding its anticipated interest rate shift. This is due to the prominent role wage growth plays in driving inflation. Bundesbank President Joachim Nagel pointed out that wages have jumped notably of late, particularly in Germany. Nonetheless, he has not observed any signals of a wage-price spiral.
Links
- European Central Bank
- Bundesbank
Read also:
- Year of climate records: extreme is the new normal
- Precautionary arrests show Islamist terror threat
- UN vote urges Israel to ceasefire
- SPD rules out budget resolution before the end of the year
Source: www.ntv.de
