RBA: Wages growth is worse than you think

Sunday 11 February 2018

When discussing wages growth, economists tend to focus on the wage price index (WPI), which measures wage pressures across the various industries (i.e. the price of doing a particular job).

Australia’s WPI rebounded slightly in the September quarter of 2017 – courtesy of the Fair Work Commission’s decision in June to lift the minimum wage 3.3% to $18.29 from July, affecting some 2.3 million workers, which artificially boosted overall wages growth.

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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.