SYDNEY Australian wages increased at the fastest pace in a decade in the first quarter, although quarterly gains missed forecasts, in a result that offers some solace for policymakers who worry a damaging price-wage spiral would lead to more rate hikes.

Figures from the Australian Bureau of Statistics out on Wednesday showed its wage price index rose 0.8% in the March quarter from the previous quarter, just under forecasts of a 0.9% increase.

Annual pay growth, however, accelerated to 3.7%, from a revised 3.4% the previous quarter, slightly beating forecasts of 3.6%.

(Reporting by Stella Qiu; Editing by Christian Schmollinger)