In the Eurozone wages no longer keep pace with inflation. With a meager +1,1% on an annual basis in the second quarter - according to Eurostat data -, the dynamics of wages in the currency area fell to its lowest level in three years now.
The increase is lower than the average price growth rate, which stood at 1,4% in the same period. This means that, in fact, real wages have declined.
Also today, the European statistical institute confirmed a slowdown in the cost of living in August, with the annual growth in prices stopping at +1,3%, against +1,6% in July and 2,6% in August 2012.
