Bankinter : Labour Costs rebounded 4.6% in Q3 against 5.2% previously (revised up from 4.7%). Wages were up 4.4% versus 4.9% previously (revised up from 4.5%).
Our view: Wage pressures remain elevated and will hamper the ECB’s rate cut process in upcoming meetings. This is especially so as they will be coupled with a more hawkish Fed as a result of the pick-up in inflation that will be triggered by the policies of the incoming Trump administration.
