Australian Wage Price Index for Q1 2023 (January – March)
+0.8% q/q
- expected 0.9%, prior 0.8%
+3.7% y/y
- expected 3.6%, prior 3.3%
more to come
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The Australian Wage Price Index (WPI) is a quarterly measure of wage inflation and labour cost movements in Australia.Key points:
- released by the Australian Bureau of Statistics (ABS) on a quarterly basis
- covers changes in salary and wage levels for various industries and occupations (construction, manufacturing, retail, health care, education, and more)
- covers both the public and private sectors, including full-time and part-time employees
- measures changes in base salary and wage rates, excluding bonuses, overtime payments, and other additional payments. It focuses on the underlying regular wage movements
- The WPI is used by policymakers, economists, and businesses to monitor wage growth trends and assess labor market conditions. It provides insights into the dynamics of wage inflation and can be an indicator of changes in living standards, workforce productivity, and the overall health of the economy.
Its of special note to the folks at the Reserve Bank of Australia (RBA), as it helps inform their decisions on monetary policy.
- Rising wage growth can lead to increasesed consumer spending and potentially contribute to inflationary pressures in the economy.