06:41 AM EST, 02/28/2025 (MT Newswires) -- Canadian average hourly wage growth held at just under 6% year over year in December, according to the payroll survey's (SEPH) fixed-weight measure, noted Bank of Montreal (BMO).

While the various Canadian wage measures will have different distortions and yield some differing results, the final three months of the year, by this calculation, saw the fastest wage growth since at least the early 1990s, said the bank.

More importantly, wage growth -- by all measures -- is now well outpacing headline inflation. In real terms, wage

growth over the latest three months pushed above 4% year over year, also the fastest since at least the early 1990s, stated BMO.

While that is helped by a temporary reduction in headline inflation -- sales tax holiday -- the same holds true excluding taxes, pointed out the bank.

A still-sturdy job market and past inflation continue to feed "solid" wage growth, all while inflation on the ground has cooled, added BMO.

This is a win for Canadian households and has helped cushion the impact of factors like mortgage resets, according to the bank.