Today (August 19, 2026), the Australian Bureau of Statistics released the latest – Wage Price Index, Australia – for the June-quarter 2026, which shows that the aggregate wage index rose by 3.2 per cent over the 12 months down from 3.4 per cent in the March-quarter. With the annual inflation rate for the June-quarter came in at 3.7 per cent, workers once again had to endure real wage cuts, which is not consistent with an economy that is overheating and running short of resources. It also reflects badly on the constant claims from RBA officials including the governor that unemployment is still not low enough and the ‘tight’ labour market is contributing to the slightly elevated inflation rate. Nothing could be further from the truth and this data demonstrates that.