Wages will grow faster than inflation from next financial year and Treasury expects the lowest unemployment rate in almost five decades to arrest the decline in Australians’ purchasing power.
The price of what households buy has increased by 3.5 per cent over the past 12 months, outstripping wages growth of 2.3 per cent. The result is that real wages have fallen by 1.2 per cent.
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Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS. Connect with Michael on Twitter. Email Michael at michael.read@afr.com
