The Wage Price Index was released on Wednesday and is a measure of how fast wages are increasing.
It showed that wages increased 3.4 per cent over the past year, the same as the annual increase from last quarter.
An annual growth rate of 3.4 per cent is reasonable. The long run average is 3.1 per cent, so it’s slightly above average.
However, as the graph below shows, the growth rate in wages has fallen since it peaked at the end of 2023.

The Reserve Bank will certainly be happy, as it firmly believes that higher wages are a cost for businesses, who will push up prices in order to protect their profits. For the Reserve Bank, higher wages lead to higher inflation.
Is the cost-of-living crisis over?
Not so fast. Wages growth is only part of the picture. What people should really be focused on is what economist call real wages.
Real wages is a measure of how much stuff you can buy with your wage.




