Australia hikes minimum wage as inflation soars

SYDNEY, June 15 (AFP): Australia raised the minimum wage by over five per cent on Thursday, a slower-than-inflation increase as prices for basic goods soar.

The Fair Work Commi-ssion set the new minimum rate at Aus$21.38 an hour, a 5.2 per cent increase.

Inflation is forecast to hit seven per cent by the end of the year, according to central bank governor Philip Lowe.

Food, fuel and other costs have been pushed higher by Russia's invasion of Ukraine, supply chain problems from Covid lockdowns in China and floods on Australia's east coast.

At the same time wage growth has been stalled in Australia for years, despite ultra-low unemployment of 3.9 per cent and many businesses struggling to find staff.

The Reserve Bank of Australia has tried to cool soaring price rises by repeatedly.