During the initial three months of 2024, Australian workers experienced wage growth that exceeded inflation rates, although the increase was less than anticipated. This development is likely to be viewed positively by the Reserve Bank as it deliberates on future interest rate adjustments.
The wage growth rate was reported at 4.1% annually for the March quarter, a slight decrease from the 4.2% increase observed in the preceding quarter. Quarterly growth also decelerated to 0.8% from a 1% increase in the December quarter and a 1.2% rise in the September quarter of the previous year.
According to Michelle Marquardt, ABS head of prices statistics, this marks the first instance since March 2009 that annual wage growth has consistently reached above 4% for three successive quarters. Despite the growth rates falling slightly short of the forecasted 0.9% quarterly rise and an annual rate of 4.2%, wages still grew more rapidly than the annual inflation rate of 3.6% during the same timeframe.
The Australian government acknowledges the positive aspect of this wage growth, but recognizes the ongoing financial pressures faced by citizens. Measures to alleviate these pressures were highlighted in the recent budget announcement, which includes tax reductions, energy bill relief, student debt cuts, and increased rent assistance.
Source: michaelwest.com.au