Inflation remains unaffected by Minimum Wages

by Greg Jericho

Updated analysis by the Australia Institute reveals that a fair and appropriate increase to the minimum wage, and accompanying increases to award rates, would not have a significant effect on inflation.

The analysis examines the correlation between minimum wage increases and inflation going back 30 years, and finds no consistent link between minimum wage increases and inflation. It also reveals that such an increase to award wages could be met with only a small reduction in profit margins.

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