Australian workers can expect to see their pay packets growing faster than consumer prices by early next year.
An improvement in real wages, which accounts for the corroding effect of inflation on pay increases, was previously earmarked for midway through 2024.
Thanks to surging inflation, workers have been hit with staggering declines in real wages.
In the December quarter, the wage price index grew 3.3 percent through to December—well below inflation of 7.8 percent.
Explaining the shorter wait time for real wage growth as plotted out in new Treasury forecasts, Treasurer Jim Chalmers said nominal wages were expected to grow higher and inflation—now past its peak—was on track to cool off more quickly. …