- Collective wage agreements in Germany were up 6.2% y/y between January and August
- These findings do not fundamentally call into question the expected disinflation process
- But labour market situation is of great importance for the speed and extent of disinflation
- GDP 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.
