Australian workers’ living standards have been destroyed – and there is little good news ahead

‘Despite high headline inflation, investors have little expectation the RBA will raise rates if it focuses on the fragile labour market.’ Photograph: Dan Himbrechts/AAP

Over the next few weeks, the Reserve Bank will ponder just how strong the economy is. And if it focuses on the labour market, unfortunately the signs are that things are not strong at all.

In some good news for homeowners and those worried about the RBA sending the economy into a recession, even after the surprisingly high May inflation figures, investors have little expectation that the Reserve Bank will raise rates in three weeks’ time: