Total hourly wage rates ex bonuses (WPI) rose 0.5% in Q1, below the market consensus forecasts, following three consecutive 0.6% prints. The annual pace eased back to 2.3%yr, from 2.5%yr in Q4. This is a new record low for the annual pace of the WPI, which started in the September quarter of 1997. Private sector wages lifted 0.4%qtr following a 0.6%qtr gain in each of the previous three quarters. At 0.42%qtr unrounded, it is only just pipped at the post for a record low by the 0.40%qtr print of Q3 2009.



The annual pace hit a record low of 2.2%yr. In Q2, an improvement is seen in the labour market, with stronger employment growth through 2015H1 and, up to June, a drop in the unemployment rate.



"We suspect the decline in the terms of trade will prove a headwind for wage claims," notes Westpac Research.