Wage Growth Decreases in Europe as Inflation Fears Taper Off

Inflation fears are just as real in the eurozone as they are in the United States. A little good news for European inflation released today as wage growth is slowing.

This means that salaries are not expected to keep on rising and pushing up inflation rates in Europe. This information comes courtesy of the European Central Bank, which says that  by the end of 2023, negotiated pay increased by just 4.5%.

That is down from the 4.7% increase we saw previously, which means that pay growth is slowing. That is good news for stock market traders who want to see global inflation start moving down. As wages increase, that usually means that inflation is driving them up. With these slightly positive numbers, some inflation fears can be set aside.

Government officials in Germany are breathing a sigh of relief with the figure. They had been eagerly awaiting the numbers to see if they might be able to cut interest rates. The wage numbers tell them that some of the pressure from inflation has eased and rate cuts might be a good idea in the near future.

Upcoming Inflation Data to Watch

US inflation data is due to be released on Wednesday, which will help guide the stock markets further. Right now, the markets are opening flat, dropping slightly from where they were with their high closing numbers on Friday. Trading has tapered off for now and will likely continue to do so until new US inflation numbers are released.

US CPI (Consumer Price Index) data is expected to be released on Wednesday, which will give investors a good indicator of where inflation is at and where it might be headed. Not all inflation indicators agree with one another, though. CPI and PCE data is beginning to separate, traveling different paths and giving mixed signals about inflation.

ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.

Related Articles

Target in Trouble after Stock Drops 21%, and Christmas Shoppers May Not Help

5 months ago

Save

Elon Musk May Be Trying to Join Trump’s Administration

6 months ago

Save

Forced Online Scams on the Rise in Europe, Africa, Middle East, and Latin America

7 months ago

Save

Comments

0 0 votes

Article Rating

Subscribe

Login

Notify of

new follow-up commentsnew replies to my comments

Please login to comment

0 Comments

Oldest

Newest Most Voted

Inline Feedbacks

View all comments