ANZ senior economist Catherine Birch says there are huge economic benefits in ensuring that those on low wages do not see their wages fall by as much as they would without a solid increase in the minimum wage.
She says the figure would have to be higher than that for the Reserve Bank to lift rates higher than they are expected. But if the wages data comes in above market economist expectations of a 2.5 per cent lift, she suggests rates could lift to 0.75 per cent in June.Jo Masters says the inflationary problem happens if real wages rise but productivity does not."The first one is directly. We know that for market services items — things like hairdressing, vets, dry-cleaning and haircuts — those wages form a large portion of the costs.
Source: Financial Digest (financialdigest.net)
Went up during Covid. I stil drink coffee. Australians a fairly addicted and they'll keep buying.
Not my coffee, I buy generic home brand
It seems, in their analysis, that they have only factored in the cost of wage rises when it is likely that the cost of their inputs will increase too. Sloppy work!
As with everything, you can put prices up but most will purchase less which negates the rise and often makes the business worst off
Lucky I can infer the meaning of this headline in the current political climate.
Price elasticity can only go so much before people reject that overpriced cup of caffeine
If business and the LNP are to be believed, there is NEVER a right time to give ordinary workers a pay rise. The origin of our modern employment is the old feudal system and employers still think of staff as their property, not equal partners in the success of the business.
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