Free Trial

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Wage-Price Spiral Unlikely, RBA Research


In today’s quarterly RBA bulletin, there is an article, “Wage-price dynamics in a high-inflation environment: the international evidence”, that concludes that a wage-price spiral is unlikely. At the end, there is a warning – if rates don’t increase enough and high inflation becomes entrenched, then we could see a wage-price spiral after all.

  • Importantly, it concludes that due to inflation targeting, inflation expectations are not only anchored but also lower from 2023 on. The market expects them eventually to return to target, internationally. As a result, this should be reflected in wage bargaining and the ability of firms to pass on higher prices.
  • The RBA research looks at the causes of current high inflation, wage developments and the possibility of a wage-price spiral across the OECD.

To read the full story

Why Subscribe to


MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.