Australian minimum wage increased by 3.75%

The minimum wage will increase by 3.75% on July 1

• up from A$23.23 an hour to A$24.10

The Australian Fair Work Commission (FWC) said the cost-of-living wages facing households was its primary consideration in making that decision, and that the increase was consistent with forecasts of inflation returning to target next year.

The rise last year was 5.75%.

Background to this is here:

• (At least) 2.6 million Australians are set for a wage rise from July 1

The added boost to spending that the rise in wages will, at the margin and all else being equal (ps. it never is), add to price rise pressures and make the Reserve Bank of Australia’s jon in containing inflation that little more difficult. I can;t see the Bank hiking the cash rate but on hold for a little longer is certainly a likely hood.

This article was written by Eamonn Sheridan at www.forexlive.com.