Wages in the eurozone rose at a slower pace during the three months through December as the economy stalled, paving the way for further reductions in the European Central Bank’s key interest rate.

The ECB on Tuesday said wages set through negotiations between employers and labor unions or similar bodies were 4.12% higher in the fourth quarter of 2024 than a year earlier, a slowdown from the 5.43% increase recorded in the three months through September.