Australia wage growth picks up to 3.3%, short of forecasts

AUSTRALIAN wages grew at the fastest annual pace in a decade last quarter but that was still short of market forecasts and could lessen the pressure for further aggressive hikes in interest rates, sending the local dollar lower.

Figures from the Australian Bureau of Statistics out on Wednesday showed its wage price index rose 0.8 per cent in the December quarter from the previous quarter, under forecasts of a 1.0 per cent increase.

Annual pay growth picked up to 3.3 per cent, from a revised 3.2 per cent, but again was under forecasts of 3.5 per cent and a likely relief for policy makers who fear high inflation could lead to a damaging price-wage spiral. REUTERS