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Strong Pay Rises Will Feed Further Inflation, Australia PM Says

Strong pay rewards could feed into inflation and push up the cost of living even further, Australian Prime Minister Scott Morrison said, signaling wages would remain low under his government as flaring inflation becomes a key issue ahead of an election this month.

Morrison’s statement could prove expensive at a time when consumer price gains, of 5.1%, are at their highest since 2007 but wages growth has yet to materially pick up, adding to pressures on household balance sheets.