Softer-than-expected wages growth data is unlikely to allay the Reserve Bank’s fear of a wage-price spiral, economists have warned, with pay packets increasing at their fastest rate in a decade and growth tipped to accelerate further.
Private sector wages growth hit a 10-year high of 3.6 per cent in the December quarter, as workers took advantage of Australia’s extremely tight labour market to push for higher salaries.
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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