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flag Australian wages rose 3.4% annually in Dec. 2025, outpaced by 3.8% inflation, eroding real wages for first time since Sept. 2023.

flag Australian wages rose 3.4% annually in the December quarter, slightly up from 3.3% but below the 3.8% inflation rate, marking the first time since September 2023 that pay increases failed to keep pace with prices, eroding real wages. flag Quarterly wage growth held steady at 0.8%. flag Public sector wages grew faster at 4.0%, while private sector rose 3.4%. flag Despite the decline in purchasing power, Treasurer Jim Chalmers expressed cautious optimism, and the Reserve Bank of Australia maintained its cash rate at 3.85%, with markets expecting another hike by May.

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