Inflation rises at twice the rate of real wages – Michael West

Lobbyland

Inflation has risen to 5.1%, according to the latest figures from the ABS. The 5.1% annual consumer price index (CPI) figure for the last quarter was above market expectations of 4.6%. According to economist Richard Dennis, this is roughly twice the rate of real wage growth across the economy leading to the worst real pay cut for workers this century. According to Michele O’Neil the president of the ACTU this represents a pay cut of nearly $2000 in the first half of this year. Trimmed mean inflation used by the central bank to set rates, which ignores volatile changes, rose to 3.7% which is above the RBA’s target range.

Source: Inflation rises at twice the rate of real wages – Michael West