Wage growth rates sink lower, as the cost of living continues to rise across Australia.
Figures released by the Australian Bureau of Statistics (ABS) show the seasonally adjusted Wage Price Index (WPI) rose 0.5 per cent in the March 2017 quarter, and 1.9 per cent over the year.
However, when you look at the Consumer Price Index (CPI), you’ll see these rates increased 2.1 per cent in the last year.
This means that the cost of living in Australia is increasing more than we’re seeing put into our pockets.
Consumer Price Index
The Consumer Price Index (CPI) is a measure of the average price that consumers spend on a market-based ‘basket’ of consumer goods and services purchased by households. The annual percentage change in a CPI is used as a measure of inflation.
The ABS released data on which sector was seeing the slowest growth, with wages in the private sector growing only 1.7 per cent in the last year. When you compare it to the CPI increase of 2.5 per cent for housing, the differences begin to add up.
This is not good news for those who are already struggling to stretch their monthly budgets, especially those desperately trying to save a deposit for a house.
While wage growth has continued to rise since the ABS began recording data, the rate of growth has been steadily getting smaller and smaller since 2011.
Data from Australian Bureau of Statisctics, May 2017.