'It's a bit daunting': Business hit by record high costs as inflation, interest rates rise

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.

Source: News Formal (newsformal.com)

Congratulations ABC. You've discovered businesses other than cafes!

Thanks for all the free money ScoMo. Time to sit back at mums for two years playing Call of Duty!

There’s no mention of the money they are saving by working their full time staff to breaking point and not having to pay overtime or penalties to them, we need to work out where all the available retail/hospitality staff have gone..

Businesses without adequate cash reserves,will go under after Christmas. These are facts of entrepreneurship and recessionary pressures. RBA will have to lower rates,right after XMas shopping lull. If RBA waits for data in April to act it's too late,it will be a hard landing.

No it's NOT just pass it on to the CONSUMER like it is ALWAYS DONE.

Letting pensioners work without penalising them seems like a great idea. There are a number of pensioners out there at the moment who are doing the same work of someone half their age, they are capable, so give them the incentive to continue on for a bit longer, it's sensible.

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