SYDNEY--Australian wages rose modestly in the final quarter of last year as the resource-rich economy softens and unemployment ticks up as a long mining boom slows.
Wages excluding bonuses rose a seasonally adjusted 0.7% in the fourth quarter from the prior quarter and rose 2.6% from a year earlier, the Australian Bureau of Statistics said Wednesday.
The Reserve Bank of Australia is counting on relatively benign wage growth to help keep inflation under control, as consumer prices rise more strongly than expected.
The central bank kept rates steady this month at a record-low 2.5% but appeared to close off the likelihood of future interest-rate cuts as a sharp fall in the local currency has driven up the price of imports, contributing to higher inflation. At the same time, labor costs are falling as investment in new resources projects slows, reducing demand for workers.
In the private sector, wages excluding bonuses rose 0.6% in the quarter from the immediately prior quarter and rose 2.5% from a year earlier. Public-sector wages rose 0.9% in the quarter and increased 2.7% from a year earlier.
-Write to James Glynn at james.glynn@wsj.com
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