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Central BanksMedium•20 February 2026•

1 min read

Eurozone Negotiated Wage Growth Accelerates to 2.95% in Q4

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Negotiated wage growth in the Eurozone saw a significant acceleration in the fourth quarter, according to the latest data from the European Central Bank (ECB). Wages rose by 2.95% on a year-on-year basis, marking a sharp increase from the 1.89% growth recorded in the third quarter. The ECB closely monitors this metric to gauge labor market tightness and identify potential second-round effects on inflation. The stronger-than-expected figures suggest that inflationary pressures remain persistent across the region. Consequently, this data may prompt the central bank to maintain a hawkish stance and potentially delay anticipated interest rate cuts. The Euro is expected to find support as markets recalibrate their expectations for ECB monetary policy in light of these labor market dynamics.