Australian wage growth rose at its fastest pace in almost eight years in the second quarter as a strengthening labor market pushed the unemployment rate to a 48-year low.
However, the growth recorded fell short of market expectations with an increase of only 0.7% in the June quarter compared to the expected increase of 0.8%.
Meanwhile, the annual rate rose to 2.6% from 2.4%, but again missed the forecast of 2.7%. The private sector saw growth of 2.7% while public wages followed with 2.4%.
The figures noted could dispute the Reserve Bank of Australia's (RBA) move for more restrained rate tightening by returning to a rate hike of 25 basis points in September after three consecutive half-point moves.
Following that, the Aussie dollar recorded a decline as an initial reaction to the release of the data.
The market expects wage growth to rise to 3.5% by April next year as inflation has surged to a 21-year high of 6.1% and is expected to exceed 7% in the coming months.
