FX.co ★ Eurozone Wage Growth Slows in Q1

In the first quarter of 2025, wages across the Eurozone experienced a 3.4% increase compared to the previous year, a deceleration from the 4.1% rise observed in the previous quarter. This represents the most sluggish rate of wage growth since the third quarter of 2022, providing some relief to the European Central Bank. The bank is currently maintaining a cautious approach amidst declining inflationary pressures and limited economic expansion. Notably, wage increases slowed significantly in some of the region’s major economies, with Germany experiencing a rise of 2.8% compared to 4.4% in the last quarter of 2024, Italy at 3.9% compared to 4.4%, and the Netherlands at 5.6% as opposed to 6.2%. Conversely, Spain and France witnessed slight upticks, with wages climbing to 3.7% from 3.4% and 1.9% from 1.8%, respectively.