Fed: Wages continue to rise, increasing pressure on rates = 2

AAP General News (Australia)
04-27-2000
Fed: Wages continue to rise, increasing pressure on rates = 2

Average male weekly earnings rose 1.6 per cent seasonally adjusted to $823.80, up $35.40
for the year and $13.10 in three months.

Female earnings rose just 0.9 per cent to $689.40 to be up $22.70 for the year and
$6.50 for the quarter.

The Reserve Bank will be concerned wages appear to be on the rise even before the GST begins.

However the survey conflicts with recent wage bargaining outcomes.

Yesterday's HSBC survey found new wage bargaining agreements in the March quarter delivered
average annual wage increases of just 3.4 per cent, up from 3.3 per cent in December.

By contrast, the ABS survey found average annual wage increases jumped from 3.0 to 4.0 per cent.

The figures were good news for the embattled Australian dollar, which rose on news
of the wages figures.

All eyes will now be on tomorrow's inflation figures, with another bad result there
likely to set the seal on a further rate rise.

AAP ss/mfh/as/bwl

KEYWORD: WAGES 2 CANBERRA

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