Retailers say businesses are at a tipping point in the face of squeezed margins due to soaring input costs, and shoppers will increasingly bear the brunt of inflation through higher shelf prices.
The cost of living could also get worse for borrowers, with interest rate rises likely in the near future.“The surge in inflation expectations heightens the risk of a shift in the ‘psychology’ of inflation that requires more aggressive action from the RBA,” Mr Plank said, though he noted that the recent retreat in oil prices from $US130 a barrel to $US102 meant consumer expectations could quickly ease.
Australian Retailers Association chief executive Paul Zahra said pandemic supply chain uncertainties – including China’s decision to impose partial lockdowns on major commercial hubs – “In year-ended terms, underlying inflation was expected to increase further over coming quarters before moderating as supply problems are resolved.”
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Melbourne-Brisbane inland rail to slash freight costs: CSIRO reportThe $14.5 billion inland rail link between Melbourne and Brisbane will help ease freight costs by $213 million a year.
Read more »
Australia news updates live: federal court to rule on climate duty of care, PM faces pressure on rising fuel costsFollow the day’s news live
Read more »
Saudi Arabia executes 81 people in one dayThe executions come as much of the world’s attention remains focused on Russia’s war on Ukraine – and as the US hopes to lower record-high petrol prices as energy prices spike worldwide.
Read more »
Cash boost for 5 million AussiesAlmost five million Australians will benefit from the biggest boost to their social security payments in almost nine years as the government seeks to help recipients keep up with the rising cost of living.
Read more »
Scott Morrison flags tax relief as petrol hits record highsThe federal government is under pressure over high-priced petrol, with ministers canvassing whether to make a controversial change to fuel excise.
Read more »
Tax relief and excise cuts on the budget tableMore tax relief and a freezing or cutting of petrol excise are being considered as the government seeks to defuse voter anger over the rising cost of living.
Read more »