Australia's drop in real wages is a disaster. But the profits of major corporations are doing just fine | Grogonomics
Guardian AU Business
β’Wed, 19 Aug 2026 15:00:15 GMT
π° What Happened
Columnist Greg Jericho argues that Australia's real wages are falling badly while major corporate profits remain strong, citing that over the past year inflation rose faster than wage growth in every single industry. June-quarter Wage Price Index data showed average private-sector wage growth of just 0.7%, the lowest since December 2021, equivalent to about 2.8% annualised. Meanwhile NAB, CBA, BHP and Rio Tinto all reported rising profits, and the piece critiques the central bank's rate-increase rationale that was based on the "risk" of wages rising even as wage growth was near a decade low.
π The Backstory
The piece is part of the Guardian's Grogonomics column, which tracks Australian economic policy; it comes amid ongoing debate about interest-rate policy, inflation and income inequality under the RBA's recent tightening.
π― Why It Matters
The column highlights a key economic pain point in Australia - wages stagnating while corporate profits soar - and critiques central-bank policy, contributing to the political debate over living standards and interest rates.
Columnist Greg Jericho argues that Australia's real wages are falling badly while major corporate profits remain strong, citing that over the past year inflation rose faster than wage growth in every single industry. June-quarter Wage Price Index data showed average private-sector wage growth of just 0.7%, the lowest since December 2021, equivalent to about 2.8% annualised. Meanwhile NAB, CBA, BHP and Rio Tinto all reported rising profits, and the piece critiques the central bank's rate-increase rationale that was based on the "risk" of wages rising even as wage growth was near a decade low.
The piece is part of the Guardian's Grogonomics column, which tracks Australian economic policy; it comes amid ongoing debate about interest-rate policy, inflation and income inequality under the RBA's recent tightening.
The column highlights a key economic pain point in Australia - wages stagnating while corporate profits soar - and critiques central-bank policy, contributing to the political debate over living standards and interest rates.