The Australian Bureau of Statistics on Wednesday reported that the wage price index lifted by 0.6 per cent in the June quarter. Annual wages growth was steady at 2.3 per cent.

The public sector gave a little boost to the June result, up 0.8 per cent to be 2.6 per cent higher over the year. Much of that was driven by Victoria where, in original terms, public wages lifted by 1.5 per cent in the quarter to be 3.7 per cent higher over the past year.

But for those in private employment, wages growth was 0.5 per cent to remain at 2.3 per cent. Private wages growth is slowest in the Northern Territory, up by 1.6 per cent over the past year.

Across both sectors, wages are growing fastest in Victoria, up by 2.9 per cent over the past year while they remain slowest in WA at 1.6 per cent where they have been for the past three consecutive quarters.

ABS chief economist Bruce Hockman said wage growth is steady on the back of strong public sector growth over the quarter, with the health sector the main driver.

"The most significant contribution to wage growth this quarter came from the public sector component of the health care and social assistance industry, where a number of large increases were recorded in Victoria under a plan to ensure wage parity with other states," he said.

Health care wages were up by 3.3 per cent over the year, the fastest of any sector, while the slowest growth at 1.7 per cent was for workers in wholesale trade.

Reserve Bank governor Philip Lowe, in testimony to a parliamentary committee last week, said he would like to see wages growing at closer to 3.5 per cent. The bank has sliced official interest rates in a bid to drive faster economic growth it hopes will lead to higher wages growth.

The data comes as Westpac's measure of consumer sentiment showed a surprising lift in August.

It jumped by 3.6 per cent after a combined 4.7 per cent fall through June and July.

Westpac chief economist Bill Evans said given the survey was carried out as share markets fell and the Australian dollar dropped, the overall result was surprising.

He said while confidence had fallen in the wake of the RBA's recent cuts to official interest rates, there may be a lift in sentiment with expectations of further rate reductions.

"Realising that lower rates are in the offing but that there is no need for further consecutive changes might be a more encouraging signal for households than a rapid sequence of rate cuts," he said.

"Indeed part of the gain is consistent with firming expectations for additional interest rate cuts."

Just 31 per cent of those surveyed expect interest rates to be higher in a year's time. When the question was last asked in February, 43 per cent believed higher rates were on the way.