AUSTRALIAN wages grew at the fastest annual pace in 15 years in the December quarter as low unemployment and stiff competition for workers pushed up pay deals, although analysts suspect the best is over as the economy sputters.

Figures from the Australian Bureau of Statistics on Wednesday showed the wage price index rose 0.9 per cent in the December quarter, matching market forecasts. Wages jumped a record 1.3 per cent the previous quarter thanks to hefty minimum awards.

Annual pay growth picked up to 4.2 per cent, from 4.1 per cent, the highest since early 2009 and just above market expectations of 4.1 per cent due to upward revisions to past numbers. REUTERS