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Getting a handle on euro-zone wage data

Euro-zone wage data are published only quarterly, and with a long lag, and have been distorted by pandemic-related effects. So it will be another six months before we get a clearer idea of the underlying trend in earnings. For now, though, measures of spare capacity suggest that wage growth is likely to remain around 2.0-2.5%, which has in the past not been enough to push consumer price inflation to 2%.

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