Australian Q4 2022 Wage Price Index

+0.8% q/q

  • expected 1%, prior 1%

+3.3% y/y

  • expected +3.5%, prior +3.1%

The lower-than-expected result will be welcomed by the Reserve Bank of Australia, who are fearful of a wage-price inflation spiral higher. The bank will hike its cash rate on March 7 regardless. The rate is deeply negative and the Bank is way behind in its race to control inflation .

rba cash rate inflation

The cash rate is not the only thing deeply negative. With y/y CPI at 7.8% (or 8.4% if you prefer the latest monthly result) and wage growth at +3.3% real wages are also negative.