MNI BRIEF: Negotiated Eurozone Wage Growth Slowed In Q4 - ECB
Wage growth slowed in the three months to December, but remains at elevated levels, the ECB says.
Euro area wage growth slowed modestly in the three months to end-December, the European Central Bank's negotiated wage tracker showed on Tuesday.
Wage growth slowed to 4.46% q/q from 4.69% in the third quarter, the data showed. On an annual basis, wage growth in 2023 was 4.47%, up from 2.92% in 2022.
The ECB's Governing Council is focussing on wage growth as a key metric in discussions over whether to cut rates. While the direction of the latest move will be encouraging, many will still be nervous at the elevated level of growth. Q1 data will be released on May 23 -- after the April policy meeting but before June's. (See MNI SOURCES: ECB Cut Expectations Range From 50-100BP In 2024)
Source: ECB