Finance
Euro zone wage growth slowing as expected, ECB data shows
Published by Global Banking and Finance Review
Posted on July 30, 2025
1 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on July 30, 2025
1 min readLast updated: January 22, 2026
ECB data shows Euro zone wage growth will slow to 3.2% in 2025, supporting the view that inflation is under control.
FRANKFURT (Reuters) -Euro zone wage growth will slow sharply this year, as predicted by economists, the European Central Bank's wage-tracker showed on Wednesday, supporting the bank's argument that excessive inflation has now been defeated.
The ECB's wage tracker, which covers active collective bargaining agreements, indicates that negotiated wage growth, with smoothed one-off payments, was 4.6% in 2024 and would slow to 3.2% in 2025.
For the first quarter of 2026, the headline ECB wage tracker stands at 1.7%, down from 1.8% in the fourth quarter of 2025, the ECB added.
The figures are broadly in line with previous numbers in the tracker and suggest that wage growth is no longer a concerning issue for policymakers.
(Reporting by Balazs Koranyi)
The ECB's wage tracker indicates that negotiated wage growth was 4.6% in 2024.
The wage growth is expected to slow to 3.2% in 2025, according to the ECB's data.
For the first quarter of 2026, the headline ECB wage tracker stands at 1.7%, down from 1.8% in the fourth quarter of 2025.
The figures suggest that wage growth is no longer a concerning issue for policymakers.
The findings were reported by Balazs Koranyi.
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