Australia's Wage Price Index Hits 0.8% Q2 Growth, RBA Maintains Cautious Stance

The Australian Bureau of Statistics has released data showing that Australia's Wage Price Index (WPI) rose by 0.8% in the second quarter of 2025, matching market expectations.

This quarterly increase keeps annual wage growth at 3.4%, a level closely monitored by the Reserve Bank of Australia (RBA) as it weighs future interest rate decisions.

The RBA has maintained a cautious stance on inflation, keeping the cash rate at 4.35% since November 2023, due to inflation currently running at 3.6% as of the June quarter.

Economists note that productivity growth remains weak, which means the RBA will watch unit labour costs closely, as continued rising wages with stagnant productivity could build inflationary pressures.