MNI 5 Things:Australia Wage Growth Up But Retail Still Subdued

By Sophia Rodrigues

     SYDNEY (MNI) - Following are the five things we observed in the Q4 wage

price index data published by the Australian Bureau of Statistics Wednesday.

     --Wage price index rose 0.5% q/q, taking y/y rise to +2.1%. This is the

fastest pace of growth since Q2 of 2016 when it recorded a similar increase.

     --This was the 12th quarter in a row where wage price has risen less than

the mid-point of the Reserve Bank of Australia's 2% to 3% target band. It was

the 19th consecutive quarter where the rise was below 3.0%. While there is

specific wage growth that is needed to meet the mid-point of the RBA's target

band, it is clear that a pace of 2.0% or 2.5% won't be sufficient to meet 2.5%

inflation rate.

     --Private sector wages grew at 1.9% y/y for two quarters in a row. This is

an acceleration from +1.8% in each of the two quarters prior to that but has

remained below 2.5% growth for 12 quarters in a row.

     --In original terms, wages in retail trade sector slowed to +0.2% q/q from

+0.9% in Q3. In y/y terms it rose to 1.6% compared with 1.8% in the same quarter

of 2016.

     --Wages in wholesale trade was another drag, rising 0.2% q/q while the

biggest gain came from information, media and telecommunications which saw 1.0%

q/q rise compared with +0.6% in Q3. 

--MNI Sydney Bureau; tel: +61 2-9716-5467; email: sophia.rodrigues@marketnews.com

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