EM wage pressures easing, but pockets of concern

EM labour market conditions have softened further this year, with wage growth now back to or below pre-pandemic rates in many places. Inflationary pressures stemming from labour markets have faded most notably in Poland and Romania. But a handful of EMs still face uncomfortably strong wage and core price pressures, including Czechia, Mexico and to an extent Colombia, meaning the bias among their central banks will be tilted towards interest rate rises.