In a recent update from the European Central Bank (ECB), it has been revealed that wage pressure within the Eurozone has increased during the first quarter of 2024. Negotiated wages have risen by 4.69% compared to the previous year, marking an uptick from the revised 4.45% growth seen in the last quarter of 2023. Initially, the fourth quarter's annual rate was reported at 4.49%.
Despite these increases, the real issue lies in the disparity between wage growth and the actual inflation rate, which remains significantly higher. This discrepancy means that, in real terms, employees are continuing to lose purchasing power.