Real wages have gone backwards at the fastest pace in three years and are now languishing at 2011 levels, disrupting a streak of growth trumpeted by Treasurer Jim Chalmers as the government battles an inflation comeback.
Economists and the Reserve Bank of Australia expect real wages will decline further next year as persistent inflation outstrips wage growth and diminishes the purchasing power of already cost-of-living-conscious consumers.
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Luke Kinsella is a journalist based in The Australian Financial Review’s Sydney office. He was previously a policy analyst at Treasury. Email Luke at luke.kinsella@nine.com.au