Wages rose faster than expected in the December quarter, but not fast enough to trouble Australia's reserve bank, economists say.
Total hourly rates of pay, excluding bonuses, rose 0.9 per cent in the December quarter, Australian Bureau of Statistics figures released today show.
The median market forecast was for a rise of 0.8 per cent.
The wage price index was 3.7 per cent higher than a year earlier, according to a trend estimate.
St George chief economist Besa Deda said that although the wages growth was slightly higher than expected, it would not put significant pressure on inflation.
"It is a little bit higher than expected but still pretty restrained," she said, adding that the greatest growth continued to be in the resources sector.
However, she said, overall, wages growth was at a level the Reserve Bank of Australia (RBA) would be comfortable with.
"If the RBA was going to cut interest rates in March, I don't think this would stand in the way.
Macquarie senior economist Brian Redican said, year on year, wages growth continued to stay in a range between 3.5 and four per cent.
"So, there is no sign of a rapid escalation of wages pressures and with the softness of employment over the last 12 months you wouldn't expect to see that," he said.
"The overall message is that wages growth and inflation aren't the main concerns of the Reserve Bank at the moment."
Mr Redican said he didn't think the wage cost figures would change the RBA's interest rate outlook.
