Economics
ECB’s Gloomy Inflation View Highlighted by Weak German Pay Deal
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The European Central Bank won’t find much sign of inflation in the pay deal struck by 3.8 million metals and engineering workers in Germany this week.
The IG Metall union settled with employers for a one-off Covid-19 bonus of 500 euros ($586) in June and a 2.3% wage hike starting in July. The deal is neither straightforward nor immediate -- the pay increase is effectively saved to be handed out as lump sums, and the package is stretched over 21 months.