Eurozone rate cuts questioned as German wages rise

Line chart of negotiated nominal wages versus inflation in Germany showing that German workers have not yet regained their pre-pandemic purchasing power

Wages in the eurozone’s biggest economy are rising at their fastest pace this century, fuelling concerns among some economists about the European Central Bank’s expected interest rate cut next month. Negotiated wages in Germany are expected to jump 5.6 percent in 2024, based on agreements reached between January and June, according to data published Tuesday … Read more