European Central Bank data shows that negotiated wage pressures will gradually return to normal.

The latest wage growth tracker released by the European Central Bank on Friday shows that wage growth in the euro area is expected to gradually slow down next year and return to normal levels, confirming the bank's forecasts that inflation will remain around the 2% target in the coming years. The European Central Bank stated that the wage tracker index covers existing collective bargaining agreements, and shows that wage growth rates adjusted for one-off payments will be 3.2% in 2025 and 2.3% in 2026. The European Central Bank also stated that if no adjustments are made for one-off payments, the index shows negotiated wage growth rates of 3.0% in 2025 and 2.7% in 2026.