Wage growth steadying a little too high for rate cuts in Australia

Access the full data insights to learn more about the key points outlined below:

• The wage price index increased by 0.8% q/q in Q3. Quarterly WPI growth has been steady at the same pace through 2024.

• The labour market continues to operate in a tight position, which is generating relatively strong wage growth. The RBA will view quarterly wage growth of 0.8% q/q as sustainable only if productivity growth improves. Today’s print does not change the outlook for RBA rate decisions, but it will leave the Bank attuned to upside inflation risks.