Easing real wage growth

Since the beginning of the year, we have seen real wage growth easing. In all CEE countries except Czechia, real wage growth dynamics have slowed compared to 2024. In Czechia, real wage growth in Q1 2025 reached 3.9% year-over-year, sustaining the momentum from the end of 2024. However, throughout the year, nominal wage growth is expected to decelerate further, as inflation visibly eased in 2024 and is projected to decline further over the course of the year. This development limits the room for employees to demand wage increases. We believe this is the main reason behind the easing of real wage growth in other CEE countries. On the other hand, the labor market remains tight. Therefore, we expect real wage growth to remain positive this yearalbeit lower compared to 2024and to continue supporting private consumption.