Wage growth dump humiliates RBA

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The RBA has been strong on the idea that a rebound in services wage growth is behind the recent bounce in headline inflation.

It argues that without productivity, wage inflation must be pushing up prices in these areas.

Yesterday’s Wage Price Index was unsupportive of the argument.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.