Australia: Q2 Wage Price Index likely to print 0.5%qtr - Westpac

Total hourly wages ex bonuses gained 0.5% in Q1 which was a lift from 0.4% in Q4 (which was revised down from 0.5% and is now the record low quarter print) and for Q2 analysts at Westpac are looking for modest 0.5%qtr/1.9%yr print.

Key Quotes

“Nevertheless it is holding surprisingly soft momentum with the annual rate at a historical low of 1.9%yr.”

“The relative softness in the labour market seen in broader measures, such as underemployment where a worker is willing and able to work more hours than they do, has coincided with the record low in wage growth.”

“Those looking for a minimum wage increase in the Q2 WPI are one quarter too early as the increase was not applied until July 1, 2017. So while it is true that the minimum wage rise is likely to boost wage inflation back though 2%yr in Q3, for Q2 we are looking for modest 0.5%qtr/1.9%yr print.”