A new OECD report reveals Australians have experienced one of the most significant declines in living standards among developed nations since the pandemic.The report warns real wages are set to fall further in 2026 as high inflation continues to erode workers' incomes.

This comes amid warnings from Deloitte Access Economics that Australia is facing its longest period of weak economic growth since the early 1990s recession.

The findings complicate the Albanese government's efforts to argue progress has been made in controlling inflation and easing cost-of-living pressures.The report underscores growing concerns about stagnant wages, rising living costs, and the challenges of maintaining economic stability.Experts suggest these trends could persist unless policy interventions address structural issues in the labor market and inflationary pressures.

The findings also highlight the need for long-term strategies to balance economic growth with social welfare, as households grapple with reduced disposable income and increased financial strain.