Key insights
- Australian wage growth slowed in Q1, with private sector growth at its lowest since late 2022. While seemingly localized, persistent global disinflationary signals, even from countries like Australia, can influence expectations for US inflation and Fed policy, albeit marginally. Slower wage growth could temper inflation expectations, potentially leading to a slightly less hawkish Fed stance.
SYDNEY, May 13 (Reuters) - Australian wages rose at a moderate pace in the first quarter as annual growth in the private sector slowed to the lowest in almost four years, data showed on Wednesday.
Figures from the Australian Bureau of Statistics showed its wage price index rose 0.8% in the March quarter, the same as the previous quarter and in line with analyst forecasts. Annual pay growth ticked down to 3.3%, from 3.4%.
Growth in the private sector dipped to 3.2%, the slowest since late 2022, while public wage growth dropped to 3.3% from 4.0%. The healthcare and social assistance industry made the largest contribution to wages growth.