Tasmanian wages fastest growing in the nation, ABS finds

Wages in Tasmania increased by 2 per cent annually and by 0.8 per cent in the March quarter, according to the Australian Bureau of Statistics' wage price index.

The index measures changes in pay for the same work, rather than average wages.

Both were the highest growth rates in Australia, which had annual growth of 1.5 per cent and quarterly growth of 0.6 per cent.

The ABS estimated Tasmanian public servants had annual wages growth of 3 per cent, while private sector workers' wages picked up by 1.5 per cent.

Both figures were ahead of the annual 1.1 per cent increase in Hobart inflation for the year to March.

That meant public sector and private sector Tasmanian workers tended to be getting ahead of rising living costs, especially the public sector workers.

Hobart inflation - the best available measure for Tasmania - increased by 0.8 per cent in the March quarter, driving by rising fuel and school education costs, partly because of the state government's resumption of charging school fees.

Compulsory public school levies were refunded last year due to the economic crash caused by the coronavirus pandemic.

Wages growth nationally has been low by historical standards in recent times, but so has inflation.

"Despite the strong recovery in economic activity in Australia, wage and price pressures remained subdued," the Reserve Bank said in the minutes from its May interest rates meeting.

"Spare capacity in the economy and a strong focus on cost containment by businesses were both expected to contribute to continued subdued wage and price pressures."