Wages rise 3.4% in year to September as expected
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The news: Wages increased 3.4% over the year to the September quarter, as expected, and kept pace with the June quarter.
The numbers: The wage price index lifted 0.8% in the September quarter, which was also in line with the preceding quarter. The quarterly wage price index growth was the same as in the September quarter in 2024 and slightly behind the yearly growth rate of 3.5%.
Public sector wage growth in the year to the September quarter was 3.8% while private sector wage growth was 3.2% over the same period.
ABS head of prices statistics Michelle Marquardt said "state government pay rises contributed 82% of public sector wage growth this quarter".
Public sector wage growth has outpaced private sector growth on a yearly and quarterly basis for three consecutive quarters.
The context: The RBA is forecasting wage price index growth to remain at 3.4% in the December quarter, according to its most recent statement of monetary policy.
In the minutes for the RBA’s November monetary policy board meeting, members had observed that a range of price indices “had been signalling higher inflation in the first half of 2025” than captured by the consumer price index.
Stronger inflation but weaker economic growth could indicate that the Australian economy could be facing “slightly more [supply] capacity pressure in the economy than previously assessed”, according to the minutes.
