suggesting a causal link between the decrease in domestic prices and monetary targeting. This led to the RBA's ultimate transition to inflation targeting. Indexation was adopted by the Arbitration Commission in 1975, on the basis that it would restrain wage increases. Indexation linked wage increases to past price increases. Inflation began to decrease with the establishment of indexation, decreasing from a peak of nearly 20% in 1975 to 10% by 1977. This showed the effectiveness of wage indexation in constraining wage increases. However, after 1977 wages rapidly increased due to pressure from unions who argued that wage increases were falling behind cost of living increases. The Arbitration Commission was unable to keep relevant parties in agreement with its indexation approach. As such indexation was abolished in 1981. Although these policies had contributed to decreasing the inflation rate to 10% in 1977, further success proved difficult. In 1977 Australia experienced high economic growth and rising oil prices which forced an increase in inflation before it was back under control. See also Another question was put to the people on the same day, Australian referendum, 1973 (Incomes) Referendums in Australia References Referendum (Prices) 1973 referendums 1973 (Prices)