Real wages in Europe near pre-pandemic levels, but Iran crisis clouds outlook 😔

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European inflation reached a 40-year high in 2022, peaking above 11% due to rising energy prices from Russia's invasion of Ukraine. Workers' purchasing power has not yet recovered, with real wages still below early 2021 levels in several major economies. The Netherlands shows the strongest recovery, while Italy and Spain lag behind. Wage growth has been slow due to collective bargaining cycles and central bank interest rate increases. Lower-paid workers are most affected, and ongoing geopolitical tensions may further delay recovery.