Wages outpacing inflation, but growth is decelerating.

According to the latest data from the Australian Bureau of Statistics, it has been found that wage growth has surpassed inflation in the 12 months leading up to the September quarter. However, the pace of this growth has slowed down compared to the previous year.

The Wage Price Index showed a 3.5 per cent increase in wages during this period, while the Consumer Price Index saw a rise of 2.8 per cent. This translates to a real wage increase of 0.7 per cent in the last 12 months. These numbers have been eagerly awaited by the public, and rightly so, as they have a direct impact on our financial well-being.

This is the first time since June last year that annual wage growth has fallen below four per cent. In the third quarter of this year alone, wages saw a 0.8 per cent rise, while the CPI only increased by 0.2 per cent. These figures indicate a slight slowdown in the economy, but they are still positive overall.

Interestingly, the public sector saw a higher wage increase compared to the private sector for the first time since December 2020. However, the public sector's annual growth for this quarter was lower than the peak seen in the same period last year. On the other hand, the private sector's annual growth of 3.5 per cent is the lowest it has been since the September quarter of 2022.

Michelle Marquardt, the head of price statistics at the ABS, shed some light on these numbers. She explained that the recent wage growth may have been affected by the Fair Work Commission's annual wage review. The commission's decision to increase wages by 3.75 per cent from July 1 was lower than the previous year's increase of 5.75 per cent. It was also lower than the increase awarded in the September quarter of 2022, which ranged between 4.6 per cent and 5.2 per cent.

It is clear that these figures have a significant impact on the economy and the lives of everyday Australians. As we head into the holiday season, it is important to keep an eye on these developments and how they may affect our financial situation. Stay informed and up-to-date by downloading the 9News app, available on both the Apple App Store and Google Play. With just a few clicks, you can access all the latest news on breaking events, sports, politics, and weather, and receive timely notifications straight to your smartphone. Stay connected and informed, wherever you go.

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