Adelaide's inflation rate more than double current wage growth

August 17, 2022

Wage growth has flatlined, rising by only 0.07 per cent to 2.6 per cent, less than half the rate of Adelaide's local inflation rate of 6.4 per cent, according to data released by the ABS Wednesday morning.

Adelaide saw the equal highest inflation rate in the nation of 2.1% in the June quarter of this year.

Years of stagnant wage growth capped off by deep ongoing real pay cuts mean that real wages have now effectively fallen back to 2011 levels. These cuts are projected to deepen by the end of the year with inflation expected to reach 7.75 per cent.

Wage growth must be the number one priority for the jobs summit, its essential not only for working people but for the health of the entire economy, and we need structural change to ensure that our bargaining system is fit for purpose and producing the wage rises that we need.

While business profits are at record highs and the unemployment rate is historically low, real wages are nevertheless falling quickly, and many domestic and international indicators point to a risk of downgrading economic growth.

Living standards are going backwards, and workers now have the lowest share of GDP in recorded history, it’s critical that the Albanese Government prioritises kick-starting wage growth at the upcoming jobs summit.

"Here in Adelaide we've seen inflation increase by 2.1% since March this year. We've been hit hardest in the nation."

"It's only going to get worse for families already drowning in cost of living pressures, wages need to keep up."

"Business and workers are more productive than ever before and profit levels are at record highs, whilst wages are stagnant. Workers have held up their end of the bargain, it's time for their wages to reflect that."

"The upcoming Job Summit must address the systemic issues that send real wages backwards at a time of record profits."