Headlines
ECB wage tracker signals gradual normalisation of negotiated wage pressures
Published by Global Banking and Finance Review
Posted on December 19, 2025
1 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 19, 2025
1 min readLast updated: January 20, 2026
The ECB's wage tracker predicts gradual normalization of Eurozone wage growth, aligning with its 2% inflation target for the coming years.
FRANKFURT, Dec 19 (Reuters) - Euro zone wage growth should gradually slow and normalise next year, the European Central Bank's updated wage tracker showed on Friday, underpinning the bank's projection for inflation to stay around its 2% target for years to come.
The wage tracker, which covers active collective bargaining agreements, points to wage growth with smoothed one-off payments of 3.2% in 2025 and 2.3% in 2026, the ECB said.
With unsmoothed one-off payments, the tracker indicates negotiated wage growth of 3.0% in 2025 and 2.7% in 2026, the ECB said.
(Reporting by Balazs KoranyiEditing by Gareth Jones)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. Central banks attempt to limit inflation to maintain economic stability.
The European Central Bank (ECB) is the central bank for the euro and administers monetary policy within the Eurozone, aiming to maintain price stability.
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