German pay demands won’t see inflation surge

Recent pay demands by German trade unions may look like a sign that the economy’s strength is causing a surge in inflationary pressure. But the demands are very unlikely to be met in full. We expect a moderate rise in wage growth to lend support to household spending growth in Germany without giving the ECB any real cause for alarm.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.