Eurozone wage slowdown eases inflation

European Central Bank data shows that negotiated wage growth in the Eurozone is heading towards a slowdown, expected to reach 2.6% by the end of 2026 compared to 3.2% last year. This could help reduce inflationary pressures and lessen the need for further interest rate hikes. This comes as the bank continues its efforts to combat inflation, which has exceeded 3%, by raising the main interest rate to 2.25% and preparing for a possible further increase at the upcoming meeting.

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