ACTU Withdraws Key Inflation Survey From RBA Amid Rate Policy Tensions

The Australian Council of Trade Unions (ACTU) has withdrawn its long-running survey on union members' inflation expectations from the Reserve Bank of Australia (RBA), escalating tensions over rate policy.

The move follows a public criticism by the RBA, which noted that the union survey's measure of longer-term inflation expectations diverged from its 2 to 3 percent target band. The RBA uses this data as one of several indicators to assess whether inflation expectations remain anchored.

Former officials from both organizations warn that the withdrawal will have practical consequences for the central bank's policy deliberations, making it harder to understand labor market dynamics and wage-price interactions.

The RBA has relied on the union survey as a unique window into how wage-setting institutions perceive future price pressures. Without it, the central bank will need to lean more heavily on alternative sources, including market-implied inflation measures and household expectations data.