New stats show Australians experienced the largest real wage decline on record in 2022.

The Australian Bureau of Statistics has reported that the Wage Price Index (WPI) has increased by 0.8 per cent in the December quarter of 2022, resulting in an annual wage growth rate of 3.3 per cent. 

However, this is below the inflation rate of 7.8 per cent, which means that the 'real' value of wages has decreased by 4.5 per cent, the biggest decline on record. 

Economists are warning that workers should not be blamed for the current inflation as they are experiencing a significant decline in real wages. 

They suggest that the Reserve Bank should not focus on workers and instead address the inflationary pressures in other sectors. 

Despite this, the RBA is still expected to raise interest rates in the coming months. 

While the business lobby groups are claiming credit for the increase in wages, economists are warning that the inflationary pressures could harm the Australian economy.