New Zealand's annual wage inflation, as measured by the labor cost index, eased to 1.8 percent in the third quarter of 2018 from 1.9 percent in the previous period, as private sector wage growth slowed to 1.9 percent from 2.1 percent. Meanwhile, public sector wages rose 1.5 percent in the September quarter, slightly faster than a 1.4 percent increase in the previous three-month period. On a quarterly basis, wages increased by 0.5 percent, the same pace as in the previous quarter. Labour Costs in New Zealand averaged 913.75 Index Points from 1992 until 2018, reaching an all time high of 1174 Index Points in the third quarter of 2018 and a record low of 700 Index Points in the fourth quarter of 1992.
Labour Costs in New Zealand is expected to be 1179.27 Index Points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Labour Costs in New Zealand to stand at 1195.18 in 12 months time. In the long-term, the New Zealand Labour Costs is projected to trend around 1241.04 Index Points in 2020, according to our econometric models.