Heads up: Key wages data in the Eurozone will be coming up later
Read full post at forexlive.com
The Q4 numbers showed that wages were growing at a pace that is less worrisome towards the end of last year, as seen below:
The reading then was 4.5% year-on-year (or 4.49% to be exact) and that is a drop from the 4.7% year-on-year reading in Q4 2023.
It is estimated that wages growth will have eased further in Q1 this year. But there is a risk after the Bundesbank indicated that negotiated wages in Germany had risen by 6.2% year-on-year, being much higher than expected.
For some context, the ECB had previously highlighted this key data point as being a supposed “pre-requisite” for cutting rates in June.
But after having seen their communique over the last few weeks, they are confident enough to act regardless. But this will be a major data point to be mindful of as the ECB looks to tee up further moves beyond June.
The release for the Q1 figures should come at around 0900 GMT.