At the Monetary Policy Meeting (MPM) held on January 21 and 22, 2013, the Bank decided to introduce the price stability target of 2 percent in terms of the year-on-year rate of change in the consumer price index (CPI).
Trade unions’ higher weight on requests for reduced working time or more training probably also plays a part. I’m sure the upcoming discussion will delve deeper into this as well. But when it comes to modest wage growth in the face of tight labour market conditions, Germany is by no means unique.