SYDNEY, Feb 21 Reuters Australian wages grew at the fastest annual pace in 15 years in the fourth 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 in the December quarter, matching market forecasts. Wages jumped a record 1.3 the previous quarter thanks to hefty minimum pay awards.

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

Analysts expect wage growth would moderate from here as the redhot labour market loosens, a welcome sign for the Reserve Bank of Australia, which has raised interest rates by 425 basis points to a 12year peak of 4.35 to tame inflation.

The RBA noted in its minutes on Tuesday that wage increases were already slowing in some segments of the labour market, one reason that it left interest rates on hold earlier this month.

The labour market is starting to slacken, which will ultimately weigh on wage growth, said Sean Langcake, head of macroeconomic forecasting for Oxford Economics Australia.

But there is a good deal of catchup growth to come through the wagesetting system, and the labour market still remains in a tight position. We expect WPI growth will remain around this qq pace of 0.80.9 through 2024.

Indeed, the report showed the…