Rising Costs Wipe Out Pay for Australian Workers
Australia's workers have taken a step back economically despite rising wages due to inflation exceeding wage growth. The latest Australian Bureau of Statistics figures show that nominal wages are up 3.2% for the year, but real wages - adjusted for inflation - fell over the same period.
The yearly inflation rate is at 3.8%, outpacing the 3.2% increase in wages. Global X senior investment strategist Marc Jocum described this as a 'gut punch' for working Australians.
However, experts believe that slower wage growth may put pressure off the Reserve Bank of Australia (RBA) from raising interest rates. Oxford Economics head of economic research and global trade Harry Murphy Cruise pointed out that wage growth is set to accelerate in the coming months due to a 4.75% increase in award wages that came into effect in July.
Treasurer Jim Chalmers welcomed the figures, saying nominal wages have now grown above 3% for all four years under the Labor government. However, he acknowledged that real wages fell over the year due to high inflation.