Member Login
Price pressures remain concerning, business cautions
25 Jan 2023 | Media Release
Figures released today show inflation at 7.8 per cent in the December quarter, renewing pressure on the Reserve Bank to continue raising interest rates when it meets for the first time for 2023.
The elevated level of inflation is of concern for business, and underlines the importance of the government ensuring its budget and broader policy settings are right to reduce inflationary pressures.
“With price pressures continuing to increase, it is far too soon to declare inflation has been beaten,” ACCI chief executive Andrew McKellar said.
“Even if inflation is peaking, it is doing so at a three-decade high. The Reserve Bank is right to be wary about high prices persisting. Until there is a very definite, durable decline in inflation, the RBA is likely to press ahead with a rate rise at its February meeting.
“For business, international supply chain snags continue, the labour market remains tight, and energy prices continue to increase.
“Surging demand in the lead up to the Christmas holidays was a key driver of inflationary pressures, with price rises recorded across travel, accommodation, food, and other discretionary expenses.
“The Reserve Bank has a difficult path out of the current high inflation environment and must be cautious that its next steps don’t squeeze the life out of households and businesses.
“The task for the government in the upcoming May budget will be to build confidence that public finances are being put in order. Now is the time to make very serious progress in the task of budget repair,” Mr McKellar said.
Related News
Workforce Summit hears from food supply chain on cost-of-living pressures
28/04/2023
A national Agrifood Workforce Summit held in Brisbane has heard that without urgent attention, workforce issues in the supply chain would continue to put upward...
Reserve Bank overhaul can help drive future prosperity
20/04/2023
Major changes mooted for the Reserve Bank following its first external review in 40 years will be a success if they strengthen the bank’s capability,...
ACCI welcomes new FWC president
6/04/2023
The Australian Chamber of Commerce and Industry, the nation’s largest business network, congratulates Justice Adam Hatcher SC on being officially welcomed as the new president...
Business welcomes pre-Easter rates pause
4/04/2023
Embattled small businesses will be granted some respite today after the Reserve Bank’s decision to halt its rapid run of interest rate increases. “Small business...
Business backs 4 per cent wage increase
31/03/2023
The nation’s largest business organisation, the Australian Chamber of Commerce and Industry, and its 400,000-strong member network, has backed a 4 per cent wage increase,...
Easing inflationary pressures necessitate April rates pause
29/03/2023
With further signs that inflationary pressures are receding, the nation’s largest business network has renewed its call for the Reserve Bank to pause any further...
Safeguards mechanism – assurances needed
27/03/2023
The nation’s largest business network, the Australian Chamber of Commerce and Industry, has called on the government to assure the business community that energy affordability...
Productivity Commission highlights future challenges to Australian standard of living
17/03/2023
Australia will enter a twilight era of economic lethargy and lower standards of living if the Productivity Commission’s stark warnings go unheeded. “This report should...
Small business calls for April rates pause
7/03/2023
The Reserve Bank should pause any further increases to the cash rate at its April meeting following a 25-basis point rise announced today. “With too...
Safe and healthy workplaces for all Australians
23/02/2023
The Australian Chamber of Commerce and Industry has welcomed the launch of the new 10-year Australian Work Health and Safety Strategy 2023-2033, released today. “The...
Strong gains in private sector wages continue
22/02/2023
Businesses are delivering the strongest rate of wages growth in more than decade, with the private sector wages bill rising by 3.6 per cent in...
Post-study work rights shake-up to address skill shortages
22/02/2023
An extension of post-study work rights and an easing of pre-pandemic student visa work hours restrictions announced by the federal government yesterday will help address...
Government must resist Greens’ threat to energy supplies
15/02/2023
The Australian government must categorically reject Greens proposals to block new gas and coal projects as the price of passing emissions safeguards legislation. The Greens...
Rates raise business concern
7/02/2023
The ninth increase to interest rates since May last year raises concern about the impact on small business and the wider economy. “We have already...
Passage of Safeguard Mechanism essential for Australian business
31/01/2023
Safeguard Mechanism crediting legislation before the parliament must be passed to provide energy certainty to Australian businesses. “For the sake of certainty and the achievement...
Fiscal repair must be overriding priority of federal budget
30/01/2023
Government must show expenditure restraint and commit to concrete structural fiscal repair, the nation’s largest business network has outlined today following the release of its...
Australia can't afford low port productivity
13/01/2023
The Australian Chamber of Commerce and Industry has welcomed the release of the Productivity Commission’s report Lifting Productivity at Australia’s container ports: between water, wharf and...
Safeguard mechanism reforms will provide pathway to lower emissions
10/01/2023
The Australian Chamber of Commerce and Industry welcomes proposed changes to the safeguard mechanism to drive down carbon emissions while providing business with much-needed certainty. “The safeguard mechanism will...
Migration reform key to delivering workforce of the future
10/01/2023
Expanding the skilled migration intake, offering temporary migrants a pathway to permanent residency and halving the levy employers pay to recruit foreign workers will be...
Rebuilding Australia’s workforce demands continued skills investment
20/12/2022
A surge in the number of apprentices and trainees continues the positive trajectory of rebuilding our local skills base, but maintaining this strong growth and...