Measures quarterly changes in Australian wages. Two versions of the Labor Price Index exist: one which includes bonuses, and one which excludes them. The Labor Price Index is similar to the US Employment Cost Index, an early indicator of wages pressure on inflation. An increase in the index suggests rising inflation pressures because firms tend to eventually pass higher labor costs onto consumers in the form of higher prices.

The headline figure is the quarterly percentage change in the Labor Price Index.

Technical note: The index is constructed by combining 8 separate indexes. The 4 wage price indexes are:
  • ordinary time hourly rates of pay excluding bonuses index
  • ordinary time hourly rates of pay including bonuses index
  • total hourly rates of pay excluding bonuses index
  • total hourly rates of pay including bonuses index

The 4 non-wage price indexes are:
  • annual and public holiday leave
  • superannuation
  • payroll tax
  • workers' compensation

Relevance : Rarely affects markets
Release schedule : 1:30 (GMT); quarterly, approximately a month and a half following end of reporting quarter
Source of report : Australian Bureau of Statistics
Web Address : http://www.abs.gov.au/
Address of release : http://www.abs.gov.au/ausstats/abs@.nsf/mf/6345.0
AKA : Wage Price Index