OECD household income growth stalls as living costs outpace wages

New OECD data for the first quarter of 2026 shows real household income per capita across the organization rose only 0.2%, while real GDP per capita grew 0.3%. Of the 21 economies with data, 13 recorded income gains and eight saw declines. Notable increases were recorded in Hungary and Chile, whereas the United Kingdom and France experienced modest drops, the UK’s fall driven by higher taxes and reduced social benefits.

A separate Australian report finds employee living costs rose about 28% between December 2021 and June 2026, far outpacing the 15% rise in wages. The study describes the cost‑of‑living squeeze as a “fixed‑cost story” rather than pure inflation, noting disposable income remains 3.6% below its 2022 peak. The Reserve Bank of Australia lifted the cash rate to 4.35% in early 2026 after earlier cuts, while mortgage interest charges rose 8.2% in the June quarter, adding pressure to household budgets.