As I have discussed previously, a lift in aggregate wages growth would be a welcome development from several perspectives. It would contribute to inflation being closer to the midpoint of the inflation target. Stronger income growth would also help in the context of high levels of household debt.
It would also be of benefit to government finances and more generally would strengthen our sense of shared prosperity. And, to the extent that stronger wages growth is backed by stronger productivity growth, it would boost our real incomes. We had another reading on the Wage Price Index a couple of days ago, which showed a welcome uptick.