Inflation fears are just as real in the eurozone as they are in the United States. A little good news for European inflation released today as wage growth is slowing.

This means that salaries are not expected to keep on rising and pushing up inflation rates in Europe. This information comes courtesy of the European Central Bank, which says that  by the end of 2023, negotiated pay increased by just 4.5%.

That is down from the 4.7% increase we saw previously, which means that pay growth is slowing. That is good news for stock market traders who want to see global inflation start moving down. As wages increase, that usually means that inflation is driving them up. With these slightly positive numbers, some inflation fears can be set aside.

Government officials in Germany are breathing a sigh of relief with the figure. They had been eagerly awaiting the numbers to see if they might be able to cut interest rates. The wage numbers tell them that some of the pressure from inflation has eased and rate cuts might be a good idea in the near future.

Upcoming Inflation Data to Watch

US inflation data is due to be released on Wednesday, which will help guide the stock markets further. Right now, the markets are opening flat, dropping slightly from where they were with their high closing numbers on Friday. Trading has tapered off for now and will likely continue to do so until new US inflation numbers are released.

US CPI (Consumer Price Index) data is expected to be released on Wednesday, which will give investors a good indicator of where inflation is at and where it might be headed. Not all inflation indicators agree with one another, though. CPI and PCE data is beginning to separate, traveling different paths and giving mixed signals about inflation.