The Inconvenient Truth About The Wages Price Index “Good News”

Australia’s annual wage growth remained elevated last quarter, underscoring a tight labor market and persistently weak productivity and suggesting inflationary pressures may take time to cool in a challenge for policy makers. For the Reserve Bank of Australia, it means an interest rate cut in the near term remains unlikely. In addition wages growth is nowhere near enough to make up for the huge decline in real wages over the past five years. And the gap in wage growth between the private and public sectors expanded in the September quarter. The Wage Price Index advanced an annual 3.4% in the […]