Central Europe wage rises outpace EU average levels
Fears of an inflation rebound after period of steep falls
Minimumwage hikes, tight labour markets fuel wage growth
Like Hungary, Czech cenbank could slow pace of rate cuts

BUDAPESTWARSAW, June 26 Reuters Doubledigit wage rises far outpacing average growth rates in the European Union have raised alarm among central Europe39;s monetary policymakers wary of a rebound in inflation as the region39;s economic recovery gains traction.

The Czech National Bank is likely to slow the pace of rate cuts when it meets on Thursday as wage growth and consumer demand raise inflation risks, following a shift down in the pace of easing by Hungary39;s central bank last week.

Inflation across central Europe, where prices rocketed after Russia39;s 2022 invasion of neighbouring Ukraine and slammed the brakes on economic growth, slumped at the start of the year, allowing central banks to normalise monetary policy.

But now, strong wage growth in some of the EU39;s tightest labour markets poses a key upside risk to inflation levels, with central banks tempering expectations for further rate cuts and borrowing costs still far exceeding levels before the pandemic.

Growth in firstquarter hourly wage costs ranged from an annual 16.4 in Romania to 5.9 in the Czech Republic based on Eurostat data released last week, exceeding an average 5.5 in the EU and 5.1 in the euro zone.

Polish wage costs jumped 14.1 in the first quarter, among the…