ABS data shows base pay rates increased 44.2% in 2023
Worker's pay growth is outstripping inflation for the first time in a long time. Workers had an average base pay rise of 0.9 per cent in the December quarter. That means in 2023, wages increased by 4.2 per cent just ahead of inflation at 4.1 per cent. The December figure also slightly beat economist expectations.
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TVTranscript
00:00 For the first time, we've seen annual wage price index growth above inflation in quite
00:07 a while.
00:08 So that means that households are now getting past the point where their purchasing power
00:14 was being significantly eroded by inflation, their wage growth is picked up to match it.
00:20 We think as inflation continues to decline, households purchasing power will actually
00:24 continue to improve as well.
00:26 And that seems to be showing up in households' confidence.
00:31 Confidence has started to pick up because inflation is coming down, wage growth is stronger,
00:36 we're getting closer to tax cuts and we're probably getting closer to rate cuts as well.
00:40 All that bodes better for the household sector.
00:42 [BLANK_AUDIO]