Business Responds to CPI rise

Submitted 29/01/2010

Migration for Business Growth

 

 Australian Bureau of Statistics (ABS) figures showed that the national CPI increased 0.5 per cent from the September 2009 quarter to the December 2009 quarter, for an annual rate of 2.1 per cent.

Adelaide CPI figures increased 0.3 per cent in the same quarter, for an annual rate of 2.0 per cent.

Business SA Chief Executive Officer, Peter Vaughan, said that while inflation increased, it was essentila to continue to stimulate economic activity.

"These figures show that consumer confidence is gaining momentum, however increasing demand must remain as a key priority," Mr Vaughan said.

"We've been hit with three consecutive interest rate rises and this should not serve as a trigger to prematurely increase interest rates again.

"Businesses are coming off a very tough year and we remain in the early stages of recovery.

"Implementing interest rate rises before business and consumer confidence has the chance to fully recover will have a major effect on the many small businesses across the State.

"Although the strong Australian dollar is having a negative impact on our exporters, it had a significant offsetting impact on audio, visual and computing equipment prices.

"According to the Commonwealth Bank Business SA Survey of Business Expectations for the December quarter, due for release next week, businesses remain concerned about interest rates and unemployment levels."