Labour costs in Australia are expected by RBA to rise at a fast pace.
Australian wages have ticked higher in the first quarter of 2022 but the data print released on Wednesday is understood to be lower than more recent information obtained by the Reserve Bank of Australia through its liaison programme, See: MNI INSIGHT: RBA Comfortable With Stronger Wages Growth.
Australian Bureau of Statistics data showed the wage price index increasing by 0.7% for the first quarter and an annualised and seasonally adjusted 2.4%, up marginally from 2.3% for the last quarter of 2021. The increasing pace of wages growth was cited by the RBA, along with inflation, as key reasons for this month’s 25 basis points rise in official rates to 0.35%.
In the minutes of this month’s RBA board meeting published Tuesday, the central bank said information from the liaison programme in April “had indicated that labour costs were rising at a faster pace and that this was likely to continue.”