The Australian Bureau of Statistics (ABS) now released its latest inflation report.
Now officially, we now have the highest inflation in 33 years. Anyone who can remember the 1970s knows how disturbing this can be for the economy.
Unlike the last peak, these figures show indications of continuing up. We now have a significant risk of recession. Interest rates are up, and the country's debt is now a trillion dollars. Servicing that trillion figure will be expensive. Plus, unemployment is starting to rise, and wage growth is slowing down which is worrying for retail as wage growth has not kept up with inflation. Then we have electricity prices which are expected to go up by 56 per cent. Do you see anything coming down?
What retailers need to consider now are the products they are dealing with and whether these products' prices can be raised as inflation increases.