Euro-Zone Wage Growth to Quicken in Second Half of This Year

Euro-area pay growth is set to accelerate in the second half of the year, the European Central Bank said as it gauges whether spillovers from high energy costs will require it to increase interest rates.

The ECB’s wage tracker, published Wednesday, predicts salaries will rise by an annual 2.6% in both the third and fourth quarters. That’s stronger than the projection for the first six months, but still far below the 2024 peak of more than 5%.