Minimum wage increases have no impact on future inflation

Minimum wage growth and average inflation over the following 4 quarters: 1995-2025

Date denotes the year in which the minimum wage increase occurred. In 2022 and 2023 the award wage increase has been used. Inflation for 2025 based on RBA expectation in May 2025 Statement on Monetary Policy
Chart: The Australia Institute Source: ABS, FWCGet the dataCreated with Datawrapper