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6 per cent annually over the past 21 years, easily explaining the gap between wages growth and price inflation. And productivity is still going strong, despite the myth that Australia is struggling with a productivity crisis caused by reform fatigue, apathy, or some other defect in the national character. Productivity growth has been faster over the past three years than in any triennium since the late 1990s. With no reason to expect below trend productivity, slow wages growth means the RBA may struggle to keep inflation high enough. That would be a turnaround from its usual preoccupation trying to prevent a return to the high inflation 1970s and 1980s. But the central bank can't rely indefinitely on steep rises in gas and electricity Adidas Stan Smith Red Velcro
cent target band will become a more important consideration for the central bank. Since the RBA adopted its two to three per cent inflation target over 21 years ago, inflation has averaged 2. 5 per cent, right in the middle of the target band. But wages growth using the broadest measure, average compensation per non farm employee from the national accounts averaged 3. 8 per cent. Productivity grew 1.
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