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Australia Wage Price Index for Q1 2021 came in at +0.6% q/q slightly ahead of the expected 0.5%. Yesterday the RBA minutes showed the bank saying wage growth would need to be "sustainably" above 3% to meet inflation target.

Australian Unions

Australia Wage Price Index for the January to March 2021 quarter

  • +0.6% q/q v expected 0.5% q/q, prior 0.6%
  • +1.5% y/y expected 1.4% y/y, prior 1.4%

Australia Annual Change in Hourly Rates of Pay

Private Sector

  • Private sector wage growth remained at 1.4 percent for the second quarter in a row
  • Private sector wages +0.6% m/m
  • Across industries, annual wage growth ranged from 0.4 percent for the rental, hiring, and real estate services industry to 2.2 percent for the education and training.

Public Sector

  • Public sector recorded its lowest rate of growth (1.5 percent vs 1.6 percent) since the commencement of the series.
  • Public sector +0.4% m/m

The RBA have made it clear they would like to see  wages higher to help to drive inflation higher towards the RBA target of 2 to 3% core CPI. Q1 was the highest reading since the June quarter of 2020 as Australia benefits from improved business conditions in the wake of the COVID-19 pandemic economic shutdowns. On a quarterly basis, the wage price index advanced 0.6 percent in the March quarter, the same as in the fourth quarter.

Source: Australian Bureau of Statistics

From The TradersCommunity News Desk

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