What are wages telling us? - AICD
This week we look at the implications of the latest wage data from the ABS and review the Minutes from the November meeting of the RBA’s Monetary Policy Board (MPB).
www.aicd.com.auHere’s the latest overview of wage growth from available monitoring sources:
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United States: Wage growth has shown mixed signals recently. Some data indicate ongoing healthy wage gains in early 2026, with annual pay increases around the 4% region in several measures, while other reports note a moderation compared with peak post-pandemic levels. This pattern matters for inflation expectations and policy outlook. [citations needed]
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United Kingdom: Wage growth remained elevated but steady, with annual pay increases above inflation in many surveys, supporting a cautious stance from the Bank of England on rates. [citations needed]
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Australia: The Wage Price Index and related measures suggested slower growth in 2025, aligning with central bank targets and a gradual path of monetary policy normalization. [citations needed]
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Global context: Several advanced economies report wage gains still outpacing headline inflation, contributing to persistent concerns about inflation persistence, while some regions see cooling as labor markets loosen. [citations needed]
If you’d like, I can gather the most up-to-date citations from reputable outlets (e.g., central banks, national statistical offices, and major financial press) and tailor a concise country-by-country summary with links. I can also create a quick chart comparing year-over-year wage growth across a few key economies. Would you prefer a focus on the U.S. and Europe, or a global snapshot?