salaries
Inflation stands at high levels, influencing wage dynamics and the cost of living across households. As prices rise, salaries struggle to keep pace, and the purchasing power of workers and retirees is squeezed. In response, the government has moved to cap rent increases through the end of June to help households manage housing costs.
Inflation continues to press on households. Energy and utility prices feed through to the broader economy, and market observers note that monetary conditions are reflecting higher costs. The head of the European Central Bank has signaled that monetary policy will respond to inflationary pressures in a way that reinforces price stability over time.
The core inflation rate, which excludes the most volatile items like energy and unprocessed food, has risen to multi-year highs. This trend underlines calls for wage adjustments that can sustain consumer demand while balancing business profitability. Interest rate trajectories have moved closer to levels that historically accompany tighter financial conditions.
salaries
Inflation erodes the purchasing power of wages. Collective bargaining agreements signed through spring show average wage growth that lags behind the prevailing inflation rate. The gap between negotiated raises and price increases remains a challenge for workers, unions, and employers as they navigate negotiations for a new framework to guide collective bargaining. An overarching income agreement is under discussion, where unions seek meaningful wage growth alongside appropriate constraints on employer margins and benefits. The divergence between employer priorities and union demands makes consensus difficult to reach.
saving
Saving loses value when inflation runs hot. Bank account yields have remained low while prices rise. People with money tucked away in savings accounts see a shrinking purchasing power, unless returns beat inflation. Some households consider higher-risk investments to try to outpace price increases, though this comes with greater risk. Public fixed income options currently offer modest yields, and investors often review the mix of cash, deposits, and longer-term securities to balance risk and return. Equity markets can offer potential, but volatility means careful planning is essential.
Pension
Pensions also feel the impact of rising prices. Beneficiaries have benefited from periodic adjustments designed to offset past inflation, but many will still feel the effects of higher living costs. The method used to update benefits, along with annual reassessments, shapes how future payments align with price changes. Forecasts for inflation suggest continued pressure on pension adequacy, prompting ongoing reviews of benefit formulas and adjustment timing to maintain real value over time.
rents
Housing costs are a key component of inflation. Government measures set a ceiling on rent increases through the end of June, providing relief for tenants during a period of price volatility. For small property owners and tenants, negotiations on rent adjustments are encouraged, with a 2% cap serving as a floor in the absence of a negotiated agreement. Larger landlords face stricter limits that apply until the same date. Households may see meaningful savings in rent when deals are reached, especially in markets with strong supply pressures and limited inventory. The overall effect is to moderate short-term housing cost growth while longer-term considerations about affordability and supply continue to shape policy and market expectations.