CEE inflation to stay strong, despite wage slowdown

The recent slowdown in wage growth across Central and Eastern Europe (CEE) is a welcome development for central banks, but we don’t think it will ease much further, limiting how quickly services inflation continues to fall. Meanwhile, other inflation pressures in the region, including from higher food inflation and government policies, have become a bigger concern. While we think that inflation in most countries will fall in 2026, we generally expect less monetary easing than other analysts over the next year.