Australian wages saw a rise of 2.6 per cent in the year to June, but this annual rate remains well below the current inflation rate of 6.1 per cent.
KPMG Partner and Chief Economist Sarah Hunter says the squeeze on wage growth will affect household income and this will start to feed through to consumer spending.
'And we're likely to see it concentrated, that squeeze, on discretionary items � the things that are nice to have," she told Sky News Business Editor Ross Greenwood.
