Australia’s wages rise 2.6% in year to June and continue to lag inflation

The wage index rose 2.6% from a year ago, as unions call for more support to address cost of living pressure

Australia’s wages rose at the fastest rate in almost nine years but still less than half the headline inflation rate, a gap likely to fuel calls at next month’s jobs summit for more steps to halt the decline in household’s real incomes.

The wage price index rose 2.6% in the June quarter from a year ago, seasonally adjusted, and 0.7% from previous three months, the Australian Bureau of Statistics reported on Wednesday. Economists had predicted the WPI would rise about 2.7% on an annual basis, and 0.8% in the quarter.