Real incomes shrink as wages growth of 0.7% in March quarter falls behind inflation

Labor says figures released by the ABS show gap between wage growth and cost of living increases in Australia is now the largest in more than two decades

• Election 2022 seat explorer; Pork-o-meter election promises tracker
• Guardian Australia's full federal election coverage
• Get our free news app; get our morning email briefing

Australian wage growth barely budged in the March quarter, with salaries increasing at less than half the headline inflation rate, stoking concerns pay packets continue to shrink in real terms.

During the first three months of 2022, the seasonally adjusted wage price index (WPI) rose 0.7% from the December quarter to be 2.4% higher than a year earlier. Economists had tipped a quarterly and yearly rise of 0.7-0.8% and 2.5%, respectively.