Collective wage agreements in Germany were up 6.2% y/y between January and AugustThese findings do not fundamentally call into question the expected disinflation processBut labour market situation is of great importance for the speed and extent of disinflationGDP likely shrank again in Q3 but should avoid a significant and broad-based decline in output
Just a couple of small notes but as mentioned by the Bundesbank, the higher wages are not quite reflected in the consumer prices presently. That said, it is still a spot worth keeping an eye out for just in case.
This article was written by Justin Low at www.forexlive.com.
