The salary growth in the eurozone slows abruptly in the first quarter of 2025, so the European Central Bank (ECB) will soon lower the interest rates, but at the next Monetary Policy Meeting. June.
According to the ECB, the salaries increased by only 2.4 percent compared to the previous year, which is a significant decline compared to 4.1 percent from the last quarter of 2024. And far below the last year of growth of 5.4 percent.
The slowdown in the salary growth further strengthens the belief that inflation in the eurozone will continue to decline in the target two percent, Transfers Bloomberg.
Prices in the services sector, where payments are an important cost, in April they continued to grow at a rate of four percent year-per-per-per-per-per-year-old trend indicates possible slowdown in this segment.
After a multi-year forceful salary growth, the latest collective agreements show that employees are increasingly difficult to impose requirements for employers.
In the public sector of Germany, unions have recently agreed to an increase of a total of 5.8 percent, arranged for a period of two years, and the result described as a “difficult compromise.”
The European Central Bank also provides that salaries in the eurozone grow more slowly by the end of 2025. years, adds a New York Agency.
