German negotiated wage growth slows in likely relief for ECB

Growth in negotiated wages across Germany slowed in the second quarter, providing some relief to European Central Bank policymakers and possibly bolstering the case for another interest rate cut in September.

Negotiated wages rose by 3.1% in the second quarter after an alarmingly high 6.2% in the previous three months, suggesting that pressure on inflation from labour incomes may continue to ease, data from the Bundesbank, Germany’s central bank, showed on Tuesday.

Source: REUTER