Wage Price Index (YoY) (Q2) 3.4%, higher than the estimate and matching Q1

expected 3.3%, prior 3.4%
the Reserve Bank of Australia forecast was 3.3%

Wage Price Index (QoQ) (Q2) 0.8%, in line with the estimate and down a tic from Q1

expected 0.8%, prior 0.9%

Australia’s Q2 wage data surprised slightly to the upside on an annual basis, with wages rising 3.4% y/y versus the 3.3% expected and in line with Q1’s pace. Quarterly growth slowed marginally to 0.8% from 0.9% but matched forecasts.

The stronger-than-expected annual print, above the RBA’s 3.3% projection, could reinforce concerns over lingering domestic inflation pressures and may lessen the urgency for deeper rate cuts, even as momentum in wage growth appears to be easing on a quarterly basis.

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The Wage Price Index, released by the Australian Bureau of Statistics, is an indicator of labor cost inflation and of the tightness of labour markets.

The Reserve Bank of Australia pays close attention to it when setting interest rates.

A high reading is positive (or bullish) for the AUD, at the margin, while a low reading is seen as negative (or bearish).