Wages in Germany Experience Strongest Surge in 30 Years

According to the Bundesbank, Germany recorded the strongest wage growth in over thirty years in the third quarter, despite the economy slipping into stagnation. In its monthly report published yesterday, the Bundesbank announced that negotiated wages, including side agreements, increased by 8.8% compared to a year ago, marking the fastest growth rate since 1993. Even excluding special payments, wages rose by 5.6%. However, the Bundesbank suggests that this pace is unlikely to continue, as this period may represent the peak for wage increases. The data arrived just one day before important Eurozone wage figures that will help shape the path of monetary policy following the expected cut in the deposit interest rate at the European Central Bank's meeting in December.