Small businesses are struggling with record high costs while trying to remain competitive, as consumer confidence falls in response to inflation and rising interest rates.
Small businesses are struggling with record high costs while trying to remain competitive, as consumer confidence falls in response to rising inflation and interest rates.Businesses are worried that passing on price hikes will scare customers awayData from NAB's monthly business survey shows the cost of doing business is at record highs, and those prices are being passed on to consumers.
"Input costs have risen quite strongly, particularly in sectors like retail, but at the same time, we've also observed that retailers have been able to kind of increase their prices as well." On July 1, the minimum wage rose 5.1 per cent, and the superannuation guarantee was increased from 10 per cent to 10.5 per cent.as well as employees under 18 who work more than 30 hours.
"And of course, there's a real price sensitivity around passing prices on to consumers, because consumers are under an equal amount of pressure.Mr Zahra is also concerned about a knock to consumer confidenceHe said while May was a record month for retail sales, at $34.2 billion, the Australian Bureau of Statistics figures did not tell the full story.
John Buchanan from the Workplace Research Centre at the University of Sydney said the increase to the minimum wage and higher pay for workers in general was not a bad thing.
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