Substantial wage increases needed to beat inflation



Workers need a $7,000 salary increase to keep up with the rising cost of living.

Canstar analysis shows that the average worker earning $92,030 would need an annual income of $7,178 to keep pace with inflation, which rose 7.8 percent annually in the December quarter.

Inflation has risen 1.9 percent in the past three months, according to the latest national figures released this week.

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Wages have risen solidly, but have lagged far behind rapidly rising inflation, representing record declines in real wages.

In the September quarter, the wage price index rose by 3.1 percent on an annual basis and 1 percent on a quarterly basis.

Canstar money expert Effie Zahos said changing jobs could bring higher pay.

“The number of applications per vacancy increased by 10.4 per cent in November to December according to SEEK, indicating that Australians are looking to make a career move in 2023,” she said.

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The higher-than-expected inflation numbers also likely drove a ninth rate hike, which will flow through to higher-paying mortgage holders.

RateCity analysis showed that a further 25 basis point increase in cash interest will add another $76 to monthly payments on a $500,000 loan, an increase of $908 compared to May last year before rates began to rise. to rise.



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