What is a wage price index
There is a direct correlation between annual CPI changes and changes to some types of fixed income, such as Social Security income and other government-sponsored programs. CPI can relate to wage increases indirectly because as the costs of goods go up, the wages required for new hires will also go up, In seasonally adjusted terms, the Private sector wage price index rose 0.5% and the Public sector index rose 0.8%. The highest index rise at an industry level (in original terms) was recorded in Electricity, gas, water and waste services and Health care and social assistance (0.7%). The 2016 National Average Wage Index is calculated by multiplying the 2015 NAWI of $48,098.63 by the percentage change in average wages between 2015 and 2016 (based on the SSA’s average wage data).