ECB notes that wage growth expected to be 'very strong' in the coming quarters

• Taking into account the impact of inflation, real consumer wages are now substantially lower than before the pandemic
• This could lead trade unions to demand higher wage increases in upcoming negotiation rounds
• Looking ahead, wage growth over the next few quarters is expected to be very strong compared with historical patterns
• Beyond the near term, the expected economic slowdown in the euro area and uncertainty about the economic outlook are likely to put downward pressure on wage growth
• Full release

With high inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term taking over, governments and businesses will have to deal with the socioeconomic pressures that come with it. What makes things more difficult for the working class is that there are also other strains stemming from the energy crunch and cost-of-living crisis in general.

In some parts of the world, when business costs are raised for everyday products, consumers never benefit for when the costs go down. It's always going to keep going higher and that's when people start to demand more in terms of wages to keep up. And the cycle of life continues.