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INFLATION fears are mounting, with another three months of strong earning growth increasing pressure on the Reserve Bank.
A day after the consumer price index burst through the Bank's warning limit for the first time in four years, official wages figures show average weekly earnings for May also grew faster than predicted.
The Australian Bureau of Statistics said male full-time earnings grew 1.4 per cent in the quarter and were up 4.5 per cent for the year.
Female earnings caught up slightly, growing 1.6 per cent for the quarter, and 4.5 per cent for the year.
The average full-time male wage is now $835.20 a week, up $35.80 for the year, while the average full-time female wage is $700.60, up $30.40
Home loan leaders the Commonwealth bank of Australia and the National Australia Bank became the first to pass on the Reserve Bank's official 0.25-percentage point rate rise to customers.
The CBA - the biggest home lender - said it would increase its key variable rate by the full amount to 8.07 per cent, the NAB's variable rate rises to 8.06 per cent.
Both of he other two major high street banks Westpac and the ANZ have raised their home loans rates by similar amounts.
This followed the Reserve Bank lifting the official cash rate to 6.25 per cent from 6 per cent.
The Reserve Bank gave a clear signal that further interest rate rises are likely as economic growth