Wages are not to blame for rising inflation
Analysis of the National Accounts and Reserve Bank data and forecasts confirms rising wages are not causing renewed inflation increases.
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Media release
RBA wrong to punish workers for rising inflation – new report
Inflation is rising again and, unfortunately, so are interest rates.
The Reserve Bank of Australia’s recent decision to raise the cash rate from 3.6% to 3.85% involves a misreading of the factors driving inflation.
Analysis of wage, inflation and productivity data during 2025 and RBA’s own forecasts for 2026 and beyond reveals that rising wages have not been the driver of the recent rise in inflation.