How high will wage growth be in 2023 in the euro zone?

The question of how much wages will grow in 2023 in the euro zone is very important. If they rise markedly faster in 2023 than in 2022, then inflation in 2023 will become wage-push inflation (whereas inflation in 2022 has been primarily due to commodity prices) , which the ECB will have to combat more vigorously. We use an econometric estimat ion to try to predict wage growth in 2023 in the euro zone, explaining wage growth using: Inflation; The unemployment rate; Productivity gains; Catch-up of any previous loss of purchasing power. This leads to a forecast of a 6.2% increase in per capita wages in 2023 in the euro zone, which means a sharp acceleration in wage-push inflation and headline inflation of around 5% in 2023 , assuming no further change in relative commodity prices.