Australia's wage price index rose 0.8 percent on the quarter in the three months to June, easing from growth of 0.9 percent in the three months to March, with year-over-year growth in the index unchanged at 3.4 percent. Monthly labour market data over that period showed ongoing low unemployment rates and participation rates close to record highs.

WPI expected up 0.8 percent on quarter in Q2 after running slightly hotter at 0.9 percent in Q1. On year, the consensus sees WPI up 3.3 percent versus 3.4 percent in Q1.

A measure of the price employers pay for labour due to market factors, specifically wages and salaries. Wages and salaries reflect payments in cash or kind that are made at regular intervals and include: piecework payments; enhanced or special allowances for working overtime or unsocial hours; regular supplementary allowances ; payments for employees away from work for short periods but not including absences for sickness or injury; and bonus and incentive payments.

The wage price index is an easy way to evaluate wage trends and the risk of wage inflation. Officials at the Reserve Bank of Australia closely monitor wage inflation to assess the outlook for consumer prices and broader inflationary pressures. Wage pressures tend to strengthen when economic activity is booming and the demand for labor is rising rapidly. During economic downturns, wage pressures tend to be subdued because labor demand is down. By tracking labor costs, investors can gain a sense the outlook for inflation and monetary policy, with interest rates more likely to rise when wage inflation is high.