MNI BRIEF: Aussie Wages Rise 0.8% Q/Q In Q2

The Wage Price Index rose 0.8% q/q in Q2, in line with expectations, and 3.4% y/y – 10 basis points above market forecasts and unchanged from Q1, Australian Bureau of Statistics data showed Wednesday.

“Annual wage growth to the June quarter 2025 was unchanged from the 3.4% rise seen in the March quarter 2025 but was down from the 4.1% growth at the same time last year,” said Michelle Marquardt, head of prices statistics at the ABS. “The share of wage changes greater than 4% has declined since this time last year. The smaller proportion of jobs with larger wage increases has contributed to lower overall wage growth.”

The Reserve Bank of Australia expects the WPI to ease to 3.3% by the December quarter and bottom at 2.9% by the end of 2026. The Board cut the cash rate by 25bp to 3.6% on Tuesday. (See MNI RBA WATCH: Bullock Points Toward Further Cuts)