The ECB wage tracker – an important tool used to assess wage developments across the euro area – is signalling that overall wage pressures have moderated since 2023. At the same time wage growth is expected to remain elevated in 2024, and to show a bumpy profile. These developments reflect the staggered nature of the wage adjustment process as workers continue to recoup real wage losses from past price shocks, as well as the important role of one-off payments in this process. Such one-off payments are also behind the increase in euro area negotiated wage growth in the first quarter. This Blog discusses the latest ... (full story)