Some go backwards while others surge forward

The Australia Institute notes the divergent experiences of Australians today, pointing out the Reserve Banks decision to hold interest rates steady doesn't help those on lower incomes.

By 

Nic Stuart

Published 

December 9, 2024

Some go backwards while others surge forward

In South Australia the economy is booming but the Australia Institute points out that state public servants are facing real wage cuts as their pay fails to match inflation. It says the resulting financial strain underscores a disconnect between economic progress and public sector compensation.  


Chief Economist Greg Jericho also notes this is just one of the ways Australians are experiencing vastly different economic outcomes. He points out the Reserve Bank's interest rate settings are "smashing households and businesses. Headline inflation is within the bank’s inflation target band. What is it waiting for?

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