The Federal Statistics Office said on Monday (29 October) that German wages rose by 3.2% year-on-year in July, the highest increase since a 3.4% expansion in October 2008.
Wage increases this year have outpaced inflation, which runs around 2% , and are fuelling expectation that German consumers may spend more, in turn boosting demand for imports from European partners.
Even though Germans are traditionally more likely to save than spend, consumer activity has been a pillar of the economy, helping it to expand by 0.5% in the first three months of the year.
German wages had their sharpest rise in nearly four years in July in stark contrast to the pay cuts and job losses seen in most of the eurozone.
EurActiv.com with Reuters