The surprise increase in the monthly CPI indicator to an annual rate of 6.8 per cent in the year to the end of April is a sober reminder of the seriousness of the persistent inflation challenge, Innes Willox, Chief Executive of the national employer association, Ai Group, said today.
“The continued inflationary pressure makes it even more important that businesses, governments, employees and the Fair Work Commission exercise restraint in price and wage setting.
“An excessive increase in the minimum wage would clearly risk further embedding inflation and setting off a wage-price spiral.
“With both the Reserve Bank and the Government prioritising a return of inflation to less than 3 per cent, it is critical that we do as much as possible to avoid additional increases in interest rates,” Mr Willox said.
