Euro-zone wage growth picks up

The increase in wages and other labor costs accelerated in the euro zone during the first quarter of 2011, although wages continued to fall in Greece and Ireland—two members that are grappling with fiscal crises.

The European Union's Eurostat agency Monday said wages and salaries in the 17 nations that use the euro were up 2.3% from the first quarter of 2010, a pickup from the 1.4% annual increase recorded in the final three months of 2010.

Total labor costs, which include taxes paid by employers, were up 2.6% from the first quarter of 2010, compared with a rise of 1.5% in the final quarter of 2010.

The pickup in wage growth will concern the European Central Bank, which raised its key interest rate in March in order to prevent a second round of price increases in response to higher commodity prices.

Source: Wall Street Journal