Confidential Treasury analysis shows decade high wages growth that has pushed the average fulltime pay above $100,000 is now the biggest driver of consumer price inflation, undercutting claims widespread corporate profit gouging is to blame.

Pay rises overtook import prices and supply shocks to form the lion’s share of headline CPI in the June quarter last year, according to Treasury analysis obtained by The Australian Financial Review under freedom of information, a trend economists expect continued to the end of 2023 and into 2024.