"It's simple," Ms Munday said.

"Less money in workers' pockets means less money to spend in the local Tasmanian economy."

Tasmanian average wages have long been significantly lower than the national average.

Also, Tasmanian wages growth has recently fallen significantly behind price increases.

The Australian Bureau of Statistics' wage price index put Tasmanian wages growth at 2 per cent in the year to March.

The ABS estimated Hobart inflation - the best available measure for Tasmania - increased by nearly double that (3.6 per cent) in the year to June.

Automotive fuel and housing costs were among the key drivers of the 1.1 per cent Hobart consumer price index rise in the June quarter alone.

That was the biggest quarterly increase since late 2019.

"Workers will be looking at these CPI figures and they'll be asking that their wages keep up with living costs - as they should - after nearly a decade of record low wage growth," Ms Munday said.

She said she had heard lower wages for Tasmanians described as the "Tassie trade-off" or the "lifestyle penalty".

"It's often a reference to supposed lower cost of living in Tasmania as to why we've historically been paid less than other workers interstate," she said.

"Honestly, that was just an excuse to pay workers less.

"I'm not sure it ever held true, but it definitely doesn't now, as the latest CPI figures show.

"CPI was higher in Hobart than in Melbourne.

"There is no reason why Tasmanians' wages should be lower than anywhere else in the nation.

"After all, the value of your work as a nurse, electrician or, indeed, an essential food worker, like those at McCain in Smithton who are currently bargaining for a wages deal that gives them equity with mainland workers, is the same no matter where you live and work."

Tasmanian Small Business Council chief executive Robert Mallett said the Fair Work Commission determined wages for millions of Australian workers, award wage rises would continue and it was up to workers who negotiated wages with their employers to show productivity gains.

He said the call for faster wages growth was a "fairly standard union response" that "may have some merit".

Mr Mallett said he imagined part of the reason for faster inflation would be businesses and property owners taking the opportunity to get a better return.

In his view, that would include tradies being kept busy by the building boom, landlords and certain types of retail, especially associated with homes and housing.

Mr Mallett said changing spending patterns due to coronavirus and travel restrictions were benefiting some business sectors, while others in heavily competitive fields would find it hard to put up prices, making wage increases difficult.

Ms Munday said Tasmania consistently came last on average weekly ordinary time earnings, as measured by the ABS.

She said it was usually by a couple of hundred dollars a week compared with the national average and up to $400 compared with Western Australia and the ACT.

Tasmania was also bottom of the table for median (mid-point) personal income, about $19,000 per year behind the ACT.

"All of this, but it's not cheap to live here," Ms Munday said.

"Our housing affordability - both in terms of rentals and house prices - is well documented.

"Fuel is through the roof."

"Our groceries don't cost less when we buy them in Tasmania."