Concerns about mounting wage pressures in the Australian economy were a key trigger for the RBA’s June rate hike on June 30 and are unlikely to abate ahead of the RBA’s July policy meeting next Tuesday.
The recent 5.75% minimum wage hike exceeded the country’s central bank expectations.
The data also showed upward pressure on business-based wage agreements, telling markets that it would be worrisome if private-sector wage agreements were implicitly linked to higher inflation.
The RBA has warned that upside risks to inflation are growing.
With job growth remaining strong, the central bank is likely to raise the official cash rate (OCR) next week.