The notion that Australia is facing a wage-price inflation spiral has been debunked once and for all by the below chart from Macquarie Macro Strategy, which shows wage growth falling:
Not only is the official wage price index reporting slower growth, but so too is SEEK’s Advertised Salaries Index.
Likewise, the latest Melbourne Institute survey showed that the share of Australian workers reporting pay rises has fallen (see here), whereas Xero’s small business wages measure has plummeted:
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