Australian wages rate decelerates, raising hope RBA will postpone hiking rates

August 13, 2024

Australian Wage price index continued to decelerate its pace rising by 0.8% in Q2 on quarter-to-quoter basis against 0.9% rise in Q1 and by 4.1% for the whole year against 4.1% rise in Q1.
This deceleration is a good sign for RBA seeking to start policy easing as wages dynamic has considerable impact on the inflation as a whole.
The RBA is now forced to delay rate cuts at least to the end of the year as inflation stopped easing in January at 3.4% and since then has accelerated to 3.8% in June.