Australia’s Wage Price Index softer than expected by 0.1% QoQ
|- Aussie Wage Price Index disappoints, showing a 0.5% quarterly growth, below the 0.6% expected.
- RBA's preferred wages indicator matches expectations at 2.3% YoY.
The Australian Wage Price Index, Reserve Bank of Australia’s preferred wages measure, has shown a slight disappointment on its Q1 data, missing by 0.1% on its quarterly data.
The data has arrived as follows:
- QoQ: 0.5% - a miss.
- YoY: 2.3%
As expectations were as follows:
- Quarter-over-quarter (QoQ): 0.6%
- Year-over-year: 2.3%
Earlier, analysts at Westpac Banking Corporation explained that last week, the RBA said, “strong employment growth over the past year or so has led to some pick-up in wages growth, which is a welcome development.” The analysts explained that this refers to the rise from the multi-decade lows of 1.9% YoY in 2016/17 to 2.3% by end-2018, noting that this is still a long way from the 3.5% YoY pace the RBA has indicated is consistent with its inflation target.
"It is an important release but rarely moves AUD since it normally prints very close to expectations," the Westpac analysts added.
AUD/USD is down by 10pips on the knee jerk.
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