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ECB wage tracker signals gradual normalisation of negotiated wage pressures

Published by Global Banking & Finance Review

Posted on December 19, 2025

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· Last updated: January 20, 2026

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ECB wage tracker signals gradual normalisation of negotiated wage pressures
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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

ECB Wage Tracker Indicates Gradual Normalization by 2026

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)

Key Takeaways

  • ECB predicts gradual normalization of wage growth.
  • Wage tracker covers active collective bargaining agreements.
  • Projected wage growth is 3.2% in 2025 and 2.3% in 2026.
  • Unsmoothed wage growth is 3.0% in 2025 and 2.7% in 2026.
  • Supports ECB's inflation target of around 2%.

Frequently Asked Questions

What is inflation?
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.
What is the European Central Bank?
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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