Australia’s new PM endorses wage increase to ease pain of inflation

AUSTRALIA’S new centre-left Labor government on Friday proposed raising the minimum wage to ease the financial burden on families hit by soaring energy prices and a spike in consumer price inflation. Prime Minister Anthony Albanese, who was sworn in last week, said he had submitted an application with the independent wage-setting body that could help raise the pay of the lowest-paid workers from A$20.33 (S$20.20) an hour. “Workers on the minimum wage deserve a pay rise,” Albanese said on Twitter although he did not specify a proposed increase. During the election campaign, Albanese promised he would support a 5.1 per cent rise in wages. “Rising costs are putting real pressure on family budgets. And these costs are harder to meet because of a decade of deliberate decisions by the previous government to keep wages low,” he said. The Fair Work Commission will decide on the minimum wage in the next few weeks, a ruling affecting more than 2 million workers. The government can make a recommendation on the size of the award. Treasurer Jim Chalmers said this week Labor would honour its campaign pledge to argue for a wage rise matching inflation, which has risen twice as fast as wages. The government is tackling a spike in domestic wholesale prices of electricity and gas as demand for energy rises with colder weather. Data on Wednesday showed gross domestic product rose 0.8 per cent in the March quarter, topping market forecasts and setting the scene for more inflation-fighting interest rates increases by the Reserve Bank of Australia (RBA). Economists polled by Reuters said in a survey published on Friday that the RBA would raise rates by 25 basis points at its June policy meeting next week, with some predicting a 40 basis point rise to 0.75 per cent. Markets are also priced in for an increase. REUTERS