Household income growth stuck in donut zone

Monday 7 March 2016

The Reserve Bank of Australia (RBA) yesterday released real household disposable income (HDI) data, derived from the December quarter national accounts (released Wednesday), which revealed that real per capita HDI rose by just 0.1% in the 2015 calendar year (see next chart).

As shown above, Australian households are experiencing the biggest income shock since the early-1990s recession, with per capita real HDI rising by a mere 1.3% since September 2011.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.