Anthony Albanese says he would “absolutely” support a wage increase of 5.1 per cent to keep up with inflation, and Neil Mitchell says that’s a “dangerous” thing to say.

The Labor leader made the comment in response to a question at a press conference yesterday.

Neil Mitchell says it “looks like he (Albanese) doesn’t understand the economy”.

“He puts his foot in it every second day, not with NDIS gotcha stuff but with stuff like this,” the 3AW Mornings host said.

“He’s tying wages to inflation! … What happens if inflation hits eight per cent? More wage rises! It is perpetual motion.

“More money for low paid workers would be superb but it’s got to fit into this balance of what business can handle and not be inflationary.

“We are headed into very difficult economic times and we need unity, we need common sense.

“Low paid workers should get as much as can be afforded without destroying the economy and Anthony Albanese has created this expectation that it’s going to be five per cent and somehow linked to inflation forevermore.

“That is dangerous.”

Press PLAY below to hear why Neil Mitchell thinks Mr Albanese’s comments are ‘dangerous’

CEO of the Australian Chamber of Commerce and Industry, Andrew McKellar, says a five per cent increase “would be too much” for businesses.

“We’ve put forward is a submission to the Fair Work Commission to support an increase of up to three per cent,” he told Neil Mitchell.

“We think that’s fair and reasonable. Most businesses will be able to afford something in that order of magnitude.

Press PLAY below to hear more about what industry thinks is a sustainable wage hike

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