Wages in the quarter ended 31 March rose at their highest rate since 2018, the Australian Bureau of Statistics reported Wednesday.

Its seasonally adjusted wage price index rose 0.7% in the March quarter. The rate of annual wage growth was 2.4% — the highest since December 2018 — up from 2.3% in the previous quarter.

“The annual rate of wage growth has risen for each of the last five quarters from a low point of 1.4% in December quarter 2020,” said Michelle Marquardt, head of prices statistics at the ABS.

Wage rises across the private sector were the main driver of growth over the quarter, increasing 0.7% for the March quarter 2022 and annually 2.4%. Regular annual wage and salary reviews drove wage growth for the private sector, with a small number of larger increases paid to retain and attract in-demand skilled workers.

Public sector wages grew 0.6% for March quarter 2022 and annually 2.2%.