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Wage growth has yet to peak

Pay hikes under Australia's private-sector enterprise bargaining agreements have gained traction. Although annualised wage growth will climb higher over the course of the year, we still expect a slowing economy and a rapidly expanding workforce to mitigate the risk of a wage-price spiral. Meanwhile, all eyes are on the 2023/24 federal budget, which Treasurer Chalmers will unveil next Tuesday. Elevated commodity prices should support revenue gains, but some fiscal slippage seems likely given rising spending pressures.

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