WAGE costs have grown at their fastest pace in 15 months during the first three months of the year, justifying the Reserve Bank of Australia's renewed inflation concerns.
The Australian Bureau of Statistics' wage price index rebounded by 0.9 per cent in the March quarter on a seasonally-adjusted basis, the largest increase since the December quarter 2008.
However, while this lifted the annual rate to 3.0 per cent it remains substantially below the RBA's perceived line in the sand for wage growth of 4.5 per cent.
Economists' forecasts had centred on a 0.8 per cent increase in the March quarter.
Economists expect the RBA to hold fire on raising interest rates further until at least August and following the release of the June quarter consumer price index in late July.
