Today’s GDP figures provide yet more evidence that inflation is not being driven by rising wages and that workers are receiving less of the national income than ever before.

In the June quarter just 44.1% of GDP went to the Compensation of Employees. At the same time the share going to corporate profits rose to 29.9% – a level that is higher than any other time except for the abnormailty of the 2020 when JobKeeper payments boosted profits.

In the past year the real unit cost of labour has fallen 4.9%. This is yet more evidence that the recent rise in inflation has nothing to do with rising wages, and instead focus should be on rising profits as workers continue to be hit by rising cost of living and poor wages growth.