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The Guardian - AU
The Guardian - AU
National
Peter Hannam

Morrison’s objection to lifting wages in line with inflation puts spotlight on pensions linked to CPI

Prime Minister Scott Morrison at a press conference after visiting the Launceston Head to Health facility
Scott Morrison has blasted the idea of raising wages in line with CPI but politicians’ salaries are set with inflation taken into account and have increased faster than the average wage. Photograph: Mick Tsikas/AAP

Economists and advocacy groups have seized on the Morrison government’s objection to lifting minimum wages by the inflation rate, noting benefits such as pensions are tied to how consumer prices change.

The prime minister, Scott Morrison, blasted comments by the Labor leader, Anthony Albanese, on Wednesday that he would “absolutely” support wages keeping pace with prices. That call was “incredibly reckless”, Morrison said, adding that wage increases of 5%-plus were “like throwing fuel on the fire of rising interest rates and rising costs of living”.

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