Wages rise again, latest figures show

Labour costs rose largely in line with economists' expectations in the December quarter, Statistics New Zealand said today.

The Labour Cost Index showed wages in the private sector rose 0.7 per cent in the quarter, bang on market forecasts.

On an annual basis, the index rose 2.9 per cent, a touch above forecast.

Economists said the data showed the labour market was still tight, indicating the Reserve Bank would likely maintain a hawkish bias but not raise interest rates again.

The Quarterly Employment Survey, also released today, showed average total hourly earning rose 5.4 per cent to $21.35 in the year ended December -- the biggest rise since the year to December 1990.

- NZPA