The Bundesbank has issued a warning regarding inflation risks as wages in Germany have risen more than expected. According to the central bank's monthly report, negotiated wages in Germany increased by 6.2% year-on-year in the first quarter of 2024. This unexpected wage growth has cast doubt on the anticipated decline in inflation and poses a challenge for the European Central Bank (ECB) as it considers whether inflation is slowing sufficiently to reduce interest rates. The Bundesbank also noted that the German economy is expected to grow again in the second quarter, and inflation is likely to fluctuate around a slightly higher level.
Bundesbank warns of inflation risk as wages rise more than expected https://t.co/eRKHFlm25I https://t.co/Y4cTtFjXB6
German wages rose sharply at the start of 2024 — dealing a blow to the ECB as it decides whether inflation is slowing enough to reduce interest rates https://t.co/1e9W1TUYfY via @economics
German wages jump at the start of the year in risk to inflation path https://t.co/9pYOVy2uvR via @jrandow https://t.co/rU8HBGWbIt
⚠️ BUNDESBANK WARNS OF INFLATION RISK AS WAGES RISE MORE THAN EXPECTED Full Story → https://t.co/m6CQc0qgH7 Wages in Germany have been rising faster than expected, casting some doubt on expectations for a continued fall in inflation, the country's central bank said Wednesday.
🇩🇪 #GERMANY | #BUNDESBANK COMMENTS IN MONTHLY REPORT - BBG *BUNDESBANK: GERMAN ECONOMY TO GROW AGAIN IN 2Q *BUNDESBANK: INFLATION TO FLUCTUATE AROUND SLIGHTLY HIGHER LEVEL *GERMAN NEGOTIATED WAGES ROSE 6.2% Y/Y IN 1Q, BUNDESBANK SAYS *BUNDESBANK: GERMAN INFLATION LIKELY TO…