FRANKFURT, Oct 23 Reuters The European Central Bank may be predicting that wages in the euro zone will catch up with prices, but its staff will have no such luck as they face a loss in purchasing power for a third straight year, based on preliminary estimates seen by Reuters.

The ECB expects wages in the euro zone to grow faster than inflation in 2024 and 2025, regaining some of the ground lost in the past two years to runaway prices.

But that won39;t be the case for the ECB39;s own 4,500 employees.

A preliminary figure shared by the ECB with staff points to a 3.6 pay rise in January to compensate staff for an estimated 5.3 inflation rate this year, according to the central bank39;s latest projections, which put price growth at 4.3 in 2024.

Coming on the back of belowinflation rises in the past two years, this added up to an 8.4 loss in purchasing power for the euro zone39;s central bankers, according to calculations by ECB staff representatives.

First we were told to be patient because inflation was to be temporary, then that there would be a salary catchup, staff representative Carlos Bowles told Reuters. None of these two promises materialised so far and this is severely damaging staff trust towards ECB39;s leadership.

Spokespeople for the ECB could not be reached for comment.

ECB wages track those of the 20 national central banks of the euro zone, the European Commission, the European Investment Bank and the Bank for International Settlements.

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