CHART: The real story on how little Australian wages have grown

Photo: Ian Gavan/Getty Images.

Wages, according to the latest official numbers from the Australian Bureau of Statistics, grew by just 2.5% over the last 12 months.

 This is a 17-year low.

The wage price index in the December 2014 quarter grew just 0.6% for an annual rate of 2.5%, down from 2.6%.

However, the situation is worse for wage earners than these numbers indicate.

Take a look at this chart from UBS, which adds in the impact of the Consumer Price Index. It shows by how much wages have grown when subtracting inflation.

Source: UBS

Taking inflation — which is officially running at 1.7% — into account, the wage growth is just 0.8% a year.

While this sounds tiny, and is, it’s actually the best result since 2012 and supports a near-term low inflation outlook.

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