Real wages fall as pay rises lag behind inflation in Australia

Summarised from 2 outlets · Updated 12 Oct, 07:24 · Archive

Australian wage growth of 3.3 per cent annually is falling behind inflation at 4 per cent, according to Commonwealth Bank data.

Australian wages have failed to keep pace with inflation, according to Commonwealth Bank's latest wage and labour report. The bank's figures show wage increases at 3.3 per cent in annual terms, while inflation is running at 4 per cent. When measured against trimmed mean inflation, which the Reserve Bank uses as its preferred measure, the gap widens further, with that figure currently at 3.6 per cent.

CommBank economist Harry Ottley said neither the minimum and award wage increases handed down by the Fair Work Commission earlier this year, nor broader economic pressures, had boosted wages as much as expected. 'Our data is showing that wage growth has not materially responded to higher actual and expected inflation, and the impact of the Fair Work Commission decision has been notable but limited,' Mr Ottley said. 'There is no sign yet that higher inflation is feeding through to wage settings more broadly.'

The Fair Work Commission lifted minimum wage and award rates by 4.75 per cent, but the effect proved short-lived. For the three months to September, wage growth was steady at 0.8 per cent. Regionally, South Australian, Northern Territory and Tasmanian wages grew fastest at 3.7 per cent annually, while Victorian and ACT wages rose least at 3 per cent.

How it is being reported

• Real wages drop as Commonwealth Bank finds pay rises fail to match inflationAustralian wages have failed to keep pace with inflation, despite a pay rise from the Fair Work Commission, the latest labour report reveals.Perth Now · 12 Oct, 07:05
• Real wages drop as Commonwealth Bank finds pay rises fail to match inflationAustralian wages have failed to keep pace with inflation, despite a pay rise from the Fair Work Commission, the latest labour report reveals.The West Australian · 12 Oct, 07:05

In this story: Commonwealth Bank · Fair Work Commission · Harry Ottley · Australia · South Australia · Northern Territory · Tasmania · Victoria

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