Free Trial

Wages Data Expected To Show Pick Up In Pace

AUSTRALIA DATA

Today the Wage Price Index for Q3 is published which will be watched closely to see if it is still consistent with the RBA’s inflation target. Economists expect that it will be.

  • Given high inflation, the strength of the labour market and the shortages of available workers, it is not surprising that analysts and the RBA alike are expecting wage inflation to rise. Last quarter it rose 0.7% q/q and 2.6% y/y up from 0.4% q/q and 1.7% y/y in Q2 2021.
  • The Q3 WPI is forecast to be stronger again rising 0.9% q/q and 3.0% y/y. This is generally the expectation amongst those surveyed by Bloomberg but forecasts are skewed to the upside with five economists expecting a 0.8% q/q rise and four 1% and another four 1.1%. The upper end of projections is 1.4%.
  • Last quarter average pay increases in the private sector outpace the WPI at 3.8% y/y. This will be a series to watch.

To read the full story

Close

Why MNI

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.