How Eurozone Labour Costs Are Splitting Core and Periphery

Lucas and Luna examine a widening divergence in Eurozone labour costs as of June 2026. With German unit labour costs rising at 4.2% annually while Italian and Spanish costs lag near 1.8%, the gap threatens competitiveness and complicates ECB policy. They drill into sectoral data—manufacturing vs. services—and what it means for inflation persistence, using new Eurostat figures and the ECB's latest wage tracker. The hosts also connect the trend to recent portfolio flows into Southern European ETFs (EWI up 1.8%, EWP up 2.2% over five days) and discuss whether the labour cost split is a structural shift or a temporary cycle. Fresh angle that builds on prior episodes about inflation, bonds, and equities without repeating them. #Eurozone #LabourCosts #ECB #Germany #Italy #Spain #UnitLabourCosts #Inflation #Manufacturing #Services #WageTracker #Competitiveness #Economics #FexingoBusiness #BusinessPodcast #Eurostat #SouthernEurope #CorePeriphery Keep every episode free: buymeacoffee.com/fexingo