Business flags more price pain

with a ninth consecutive increase in the cash rate, economists now expect rates to climb as high as 3.9 per cent amid stubbornly high inflation.there had been no slowdown in orders from customers, and he feared inflation would keep climbing. “There’s still a lot more to do on price.”Boral shares jumped 13 per cent after the company pushed through price rises on its products, with the latest increase coming on February 1 for concrete and cement.

The states accounted for about 85 per cent of the $11.9 billion national public sector borrowing requirement over the three months to September 30, which was forecast to fall to $10.3 billion in the December quarter.Former federal Treasury economist Stephen Anthony said: “You look at the combination of the Commonwealth and the states, and we have a pro-cyclical fiscal policy.

Mr Boak said part of the increase in inflation locally was due to a pick-up in wages growth, which could persist into the future due to the lags built into Australia’s enterprise bargaining system. Mr Elliott said the quarter of a percentage point increase handed down on Tuesday meant customers would have to pay more than the buffer built in when the bank calculated their ability to meet loan repayments.“We assumed rates could go up to 5.25, so we built a buffer which is about where we are now, so that buffer has worked.”“Up to now people have been managing OK ...

Source: News Formal (newsformal.com)

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