Wages rise at record pace in September quarter: ABS

The news: Wages in Australia rose at a record pace in the September quarter but were broadly in line with expectations.

The numbers: The Wage Price Index increased 1.3% in the third quarter, data from the Australian Bureau of Statistics showed. That was in line with analysts’ estimates but up from 0.8% in the June quarter. On an annual basis, wages growth was 4%, slightly ahead of the 3.9% expected, and above the June quarter’s 3.6%.

The context: The ABS said this was the highest quarterly growth in the 26-year history of the WPI series. Wage growth was primarily driven by jobs covered by individual arrangements in the private sector, it said. Private sector wages rose 1.4% while public sector wages were up 0.9%. Wages growth is an important driver of inflation and could influence the Reserve bank’s decision on future rate hikes.