World Economy

ECB Signals Wage Growth Acceleration Ahead as Central Banks Tighten Policy

Eurozone wage growth is expected to accelerate through 2027 but remain subdued compared to historical levels, the European Central Bank indicated while assessing inflation pressures. The outlook comes as central banks worldwide intensify rate-hiking cycles to combat persistent price pressures. The Federal Reserve is positioned to raise rates for the first time since 2023, as policymakers lose confidence that inflation will cool without additional monetary tightening. Wage growth continues lagging price increases globally. U.S. consumer prices rose 3.4% annually in August while wage gains reached just 3.1%. China's economic slowdown compounds global uncertainties, with retail sales and investment growth faltering while industrial output surprised to the upside.