Wages grows 0.6pc in September quarter

Wages growth in the September quarter rose to 0.6 per cent from 0.4 per cent in the June quarter, according to the Australian Bureau of Statistics, reports Alex Gluyas.

The quarterly growth rate was in line with economist forecasts.

The annual growth rate climbed from 1.7 per cent in the year to the June quarter to 2.2 per cent in the year to September, which was also in line with consensus.

The private sector was the main driver of the change, rising 0.6 per cent in the quarter. Public sector wages increased 0.5 per cent.

The Reserve Bank is targeting annual wage growth of 3 per cent before it begins to increase interest rates.

Reserve Bank governor Phil Lowe said this week he did not expect this to occur in the next 12 months.

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