Latest wages data makes a mockery of the RBA claims that the economy is overheating (opens in new tab)

Last week, the RBA hiked interest rates again and tried to claim the economy was overheating. One way that we assess that claim is via the wages pressure in the labour market. An economy that is running out of productive resources, typically sees firms competing for scarce workers and bidding up wages to attract them. Yesterday (May 14, 2026), the Australian Bureau of Statistics released the latest – Wage Price Index, Australia – for the March-quarter 2026, which shows that the aggregate wage...