CHART: Real Australian wage growth likely went backwards over the past year

The Australian Bureau of Statistics (ABS) will release its March quarter wage price index later this morning, and it’s likely to deliver some unwelcome news to workers.

Economists expect a quarterly lift of 0.5%, leaving the year-on-year growth rate at 1.9%. That would be below the 2.1% increase in consumer price inflation in the year to March, meaning that real wage growth likely went backwards over the past year.

As seen in the chart below, that would mark the first occasion that real wage growth has gone backwards since the June quarter of 2014.

If it occurs, it will have implications on the outlook for household consumption, the largest component within Australian GDP.

The report will be released at 11.30am AEST.

NOW READ: Your 10-second guide to today’s Australian wage price index

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