Minimum wage rise may worsen inflation

Shadow Finance Minister Jane Hume says a minimum wage rise may worsen inflation. The Fair Work Commission is expected to lift the minimum wage on Monday as it meets for a review. “The decision of the Fair Work Commission is an independent one, and I am sure the Fair Work Commission will take into account all the economic factors that are surrounding the economy right now," Ms Hume said. “If the Fair Work decision comes down at a rate that is higher than inflation, inevitably and logically, it would push inflation up even further. "That would be the worst thing for Australians because ... well we all want more purchasing power. “We all want more money in our pockets. If it's going to push up inflation. That will simply erode purchasing power.”