Wage indicators under scrutiny : what can they reveal about services inflation in the euro area?

Abstract

Wage inflation is one of the most significant factors affecting consumer price inflation, and its impact is strongest in the service industries. Wage inflation in the euro area is monitored using a variety of indicators that complement each other. In this article, we take a closer look at the main wage indicators for the euro area and examine how well they predict future services inflation in the euro area.