‘Likely’ wage increase will feed inflation: Cowan

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The Centre of Independent Studies’ Simon Cowan says “a likely outcome” from the minimum wage increase is it will further feed into inflation.

“I think the big concern from the Fair Work Commission’s decision is it shows that some of the senior policy makers in this country – I don’t think they’re quite aware of the scale of the challenge that’s facing them,” he told Sky News host Chris Kenny.

“And exactly what the likely impact will be, once inflation hits, say, seven per cent as the Reserve Bank is predicting.”Read MoreThe Australian