Inflation is outpacing wage increases - Where are workers in Europe losing the most?
Prices are rising again across Europe, but wages are not keeping pace. Inflation in the EU reached 3.2% in April 2026, the highest level since January 2024, and preliminary Eurostat estimates suggest that prices continued to rise in May.
However, the increase in advertised salaries across the eurozone is not keeping pace with inflation, according to Indeed. This means that inflation is outpacing the increase in advertised salaries across Europe, significantly impacting the purchasing power of workers, with earnings buying less than before.
The latest inflationary pressures come as the EU experienced its biggest price shock in decades. Annual inflation rose to more than 11% in 2022, largely driven by rising energy costs following Russia's invasion of Ukraine.
With annual consumer prices rising by 3.2% in the eurozone in April, workers’ wages are no longer keeping pace with increases in the cost of living, according to Indeed’s wage tracker, which shows annual registered wage growth of just 2.3%. In January 2026, registered wage growth was 2.4%, while annual inflation was just 1.7%, highlighting how quickly the picture has changed.
Inflation and wage growth vary across major European economies. The United Kingdom stands out with wage growth recorded at 4% year-on-year, well above the inflation rate of 2.8%.
The UK is not alone. Since April 2026, wage growth has also outpaced inflation in Germany and Ireland, although the gap has been much narrower. In Germany, registered wage growth was 3.2% compared to inflation of 2.9%. In Ireland, the gap was even narrower, with registered wages rising by 3.7% compared to inflation of 3.6%.
Italy and France appear to be the hardest hit countries for workers. While wage growth in France has remained stable at 1.1% throughout 2026, inflation has risen from 0.4% in January to 2.5% in April. Wage growth in Italy has been below 0.8% since mid-2025, while inflation has consistently exceeded it over the past year. The gap has widened further this year, as inflation reached 2.8% in April.
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