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A confidential Treasury briefing paper obtained under Freedom of Information contends that wages growth will again be the main “driver” of inflation as supply shocks begin to ease.
The paper argues that higher labour costs and import costs combined accounted for around 60% of the December quarter’s inflation figures.
The AFR has used the paper as fodder to pursue its line of argument that workers are driving inflation:
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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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