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Terry McCrann claims the latest wage price index data should alarm Reserve Bank governor Philip Lowe and anyone who has a mortgage.
Wage growth was 3.7% the economy in the year to March, but McCrann argues that wage growth in the public sector sill soon ‘soar’ from 3% to 4% or more.
McCrann also argues that private sector wages could also surge when the looming minimum wage increase is taken into account, driving wages growth across the economy to 4.5% to 5%.
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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.
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