Australian Weekly Wages rose 0.8 percent in the three months through May, marking the smallest quarterly increase in nearly four years. Private wages excluding overtime rose 0.7 percent – the smallest gain since the quarter ending November 2007 – pointing to tepid inflationary pressure and giving the central bank ample room to keep monetary policy on hold for the time being. Furthermore, mining wages rose just 6.4 percent from the prior period, marking the smallest gain in at least five months and hinting that the crucial sector that had kept Australia relatively insulated from the 2008 global meltdown may be finally losing pace amid fading demand from China – its largest overseas export market. Indeed, Beijing has stepped up efforts to cool the East Asian giant’s economy amid fears of asset bubbles and runaway inflation.
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