Australians may wait ten years for wage recovery

Australia’s cost-of-living pressures are projected to persist until at least 2032, according to AMP chief economist Shane Oliver, as purchasing power won’t return to pre-COVID levels until then. With current wage growth at 3.4% and falling inflation, average workers may not regain their 2020 purchasing power until age 37. Despite recent inflation spikes, the Reserve Bank of Australia remains cautious about interest rate hikes, with officials emphasizing the need for controlled inflation to protect living standards.