Wages in Germany are a big event as they are set for whole sectors. Last month we posted about an agreement to raise federal and municipal wages 5.4% over 2 years.

Today there’s been talks in the construction industry to raise wages by 3.1% from June and 2.6% from June 2015. Although formal agreements have yet to be made this is another inflation busting increase. Wages in the same sector across eastern Germany will rise 0.7% higher than their western counterparts as they continue to rebalance wages across the whole of Germany.

As Adam pointed out in his post is astonishing that the Bundesbank are onboard with ECB action while there are such big increases in wages.

On the flipside, in Japan, Abe & Co must be drooling with envy.