Growth of average household income outstrips inflation

Finance-iconThe cost of living may be a political hot button, but growth in average weekly earnings outstripped inflation in the year from August 2010 to August 2011, according to new data from the Australian Bureau of Statistics.

Average weekly earnings grew faster than inflation in the last twelve months, according to new data from the Australian Bureau of Statistics.

The ABS' breakdown of
inflation by different types
of goods and services.
For a full explanation,
click here.

The Bureau yesterday released new data on Average Weekly Earnings that showed a 4.9% jump between August 2010 and 2011. Average total earnings for an adult working full time reached $1 376.30.

The September Consumer Price Index, which measures inflation from September 2010 to September 2011, recorded a headline rate of 3.5%.

The two sets of data overlap by eleven months, making it very likely that growth in average earnings outstripped inflation. Throw in recent mortgage interest rate cuts and that should leave consumers with a little extra in their pockets.

Forecasters don't see it that way. IBISWorld this week predicted that Christmas spending would grow only 3.3% this year, a fall given that figure is below inflation.

The company also predicted the average Christmas shopper will spend $1,213.22. Does that make you a scrooge or a splurger? Let us know in the DISQUS field below.

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