‘Over-the-top alarmism’: economists dismiss concerns wage rises cause inflation

Australia's minimum wage is shrinking compared to median pay, bucking global trends

The recent spurt in inflation has little do with with workers being paid more, economists say, warning the claim that wages increases could set-off inflation is over-the-top alarmism'.

Debate over how much the lowest-paid workers should receive has flared during the election campaign after the ACTU this week raised its minimum wage claim to the Fair Work Commission to 5.5% from an earlier goal of 5%, after March-quarter consumer prices spiked.