Business responds to CPI decrease

Submitted 4/02/2009

Migration for Business Growth

Effects of the global financial crisis are evident in today's CPI figures.

Australian Bureau of Statistics (ABS) figures showed that the national CPI decreased 0.3 per cent from the September 2008 quarter to the December 2008 quarter, for an annual rate of 3.7 per cent.

Adelaide's CPI figures also had a decrease of 0.3 per cent from September 2008 to December 2008, for an annual rate of 3.8 per cent.

Business SA Chief Executive Officer, Peter Vaughan, said that falling prices indicated a decrease in consumer demand.

"The continued decrease in business and consumer confidence has led to the expected fall in inflation," said Mr Vaughan.

"The global financial crisis remains a major threat to business confidence and investment, and further interest rate cuts are necessary in the coming months. while previous rate cuts have provided some relief, further action is required to lift the enormous pressure being faced by home and business owners."

"According to the Commonwealth Bank Business SA Survey of Business Expectations for the December quarter, South Australian business confidence decreased 15 per cent from the previous quarter."