Business responds to CPI rise - 27 Oct

27 October 2010

The Consumer Price Index (CPI) increased in the September quarter, according to the State’s leading business membership organisation, Business SA.

Australian Bureau of Statistics (ABS) figures showed that the national CPI increased 0.7 per cent from the June 2010 quarter to the September 2010 quarter, for an annual rate of 2.8 per cent. Adelaide’s CPI figures increased 0.9 per cent in the same quarter, for an annual rate of 2.6 per cent.

Business SA Acting Chief Executive Officer, Brett Mahoney, said that while inflation increased, the local business community remained under pressure.

“These figures indicate that consumer confidence is improving, however interest rates must remain on hold when the Reserve Bank meets next week,” Mr Mahoney said.

“Due to the two speed economy, many parts of the domestic economy remain weak.

“Our business expectations survey for the September quarter revealed continuing low business confidence across South Australia.

“Decreasing health and transport costs were not enough to offset the rise in tobacco, alcohol and housing costs.

“The annual inflation rate remains within the Reserve Bank’s target range, confirming that the Reserve Bank should wait for more definite signs of recovery in economic
conditions before any further rate rises.”

For more information, please contact: Business SA’s Manager Marketing and & Communications, Belinda Connor on (08) 8300 0275.