Workers across the globe are getting smashed

The decline in Australian real wages has been well documented by MB.

Deflating the Australian Bureau of Statistics’ (ABS) wage price index by headline CPI inflation reveals that real wages are tracking 6.6% below their June quarter 2022 peak and have fallen by 1.6% since the Albanese government came to office in the June quarter of 2022:

The latest Statement of Monetary Policy (SoMP) from the Reserve Bank of Australia (RBA) forecast that real wages will decline in the near term, driven by energy inflation from the Middle East, and won’t recover in the forward estimates.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.