Business and banking elites are calling for workers to suffer an even more severe cut in real wages after inflation surged to a fresh 32-year high.
The consumer price index in the year to December soared by 7.8 per cent – the steepest annual increase since early 1990.
With wages growing by 3.1 per cent, Australian workers are effectively suffering a cut in pay because higher prices for goods and services are diluting the buying power of consumers.
Canstar calculated the average Australian worker would need a $7,178 per annum pay rise to keep pace with the deteriorating cost of living.
Business and banking elites are calling for workers to suffer an even more severe cut in real wages after inflation surged to a fresh 32-year high (pictured is a Sydney waitress)
Despite this, Australian Industry Group chief executive Innes Willox is fighting against moves to give workers generous pay rises, arguing this would only make inflation worse.
‘Taming the inflation tiger will require…