Tasmanian private sector wages are only just keeping up with rising living costs, while public sector workers are continuing to fall behind.
Private sector wages increased by 2.7 per cent in the year to December, according to the Australian Bureau of Statistics wage price index.
Public sector wages increased by 2.2 per cent.
Hobart inflation - the best available measure for Tasmania - increased by 2.7 per cent in the year to December and 1.7 per cent in the December quarter alone.
Both were the biggest increases in the nation.
The ABS estimated domestic holiday, travel and accommodation costs surged by 18.7 per cent in the December quarter.
Tobacco costs increased by 8.1 per cent, automotive fuel by 2.4 per cent and new dwellings bought by owner-occupiers by 1.7 per cent.
Public sector workers received relatively strong pay increases of 0.9 per cent in each of the September and December quarters as new wage deals took effect.
However, the 1.7 per cent inflation increase in the December quarter nearly doubled their quarterly wage increase.
Private sector wages grew by just 0.3 per cent in the December quarter, a figure dwarfed by quarterly inflation.
Premier Peter Gutwein said the data showed Tasmanian private sector wages were growing at the fastest rate in Australia.
"The Tasmanian wage price index overall grew 2.6 per cent over the year to the December 2019 quarter, in line with inflation growth over the same period," Mr Gutwein said.
"This demonstrates the Tasmanian Liberal government's long-term plan to grow the economy and create jobs is leading to increased wages for Tasmanians, and that Tasmania remains a great place to live, work and raise a family."
Shadow Treasurer David O'Byrne said the data showed Tasmanian wages were not keeping up with the cost of living.
"One thing is clear: working people will always do it tougher under a Liberal government," Mr O'Byrne said.
"Peter Gutwein said 2 per cent (public sector) wage increases were fair and reasonable, but that doesn't get close to keeping up with the cost of living.
"This is the result of his policies.
"Wage growth is depressed, the economy is suffering and more people are getting left behind in Peter Gutwein's Tasmania."
Wages growth was subdued nationally.
"The seasonally adjusted quarterly rise of 0.5 per cent extended the period of moderate growth observed throughout 2019 ..." ABS chief economist Bruce Hockman said.
"Annually, both private and public sector wages rose 2.2 per cent.
"This was the lowest public sector growth rate since the commencement of the index in December quarter 1997."
The healthcare and social assistance sector had the strongest annual wages growth nationally, at 3.1 per cent.