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Australia's wages grew more than expected in the fourth quarter, figures from the Australian Bureau of Statistics showed Wednesday.

The wage price index climbed 0.6 percent sequentially in the fourth quarter, faster than the 0.5 percent increase logged in the September quarter. The growth rate was expected to remain at 0.5 percent.

Year-on-year, growth in wages improved to 2.1 percent from 2 percent in the preceding period. Wages were expected to climb again by 2 percent.

Wages in private sector gained at a steady pace of 1.9 percent and that in public sector remained at 2.4 percent.

ABS Chief Economist Bruce Hockman, said, "The annual rate of wage growth has increased for the second consecutive quarter reflecting falling unemployment and underemployment rates, and increasing job vacancy levels."