Under pressure: What the record-breaking wage growth means for the RBA

Of more concern for the Reserve Bank is that broad measures of labour income, including bonuses, allowances, and other non-base wage payments, are expected to increase faster than the WPI, writes Brendan Rynne.

November’s Wage Price Index (WPI) release reveals the highest quarterly growth since the first release of the WPI by the Australian Bureau of Statistics (ABS) 26 years ago, rising by 1.3 percent in September on the previous quarter. The annual growth rate of 4.0 percent is the highest since March 2009. Given inflation, real wages still remain in negative territory, but are continuing their steady recovery. Overall, wages growth in the September quarter reflected the Fair Work Commission’s ...

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Authors: Brendan Rynne

Published Date: 16 November 2023