ECB: Eurozone negotiated wage growth flat through year-end, edging up to 2.8% in first half of 2027
Macro
According to the latest wage-tracking data published by the European Central Bank, the growth rate of negotiated wages agreed in eurozone collective bargaining is expected to remain broadly flat through the end of this year before accelerating modestly in the first half of 2027. The key indicator shows negotiated wage growth holding at 2.6% to 2.7% through the end of the first quarter of 2027, then rising to 2.8%. The ECB is closely watching wage trends for signs that the recent surge in inflation has fueled excessive pay demands. It notes, however, that growth of around 3% would be consistent with its 2% inflation target.
