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Real wages in Germany increased 0.1 percent year-on-year during the second quarter of 2023, following a 2.3 percent decline in the previous three-month period. It was the first upturn in real wages since the second quarter of 2021, largely propelled by a historic surge in nominal wages that effectively counteracted the backdrop of rising inflation. Moreover, the disbursement of the inflation compensation premium and the most recent increment in the minimum wage also supported the increase. Nominal wages advanced by 6.6 percent during the second quarter (vs 5.6 percent in Q1), the fastest rate since the series began in 2008, while inflation eased to 6.5 percent over the same period (vs 8.3 percent in Q1).