Inflation Pressures
The report indicates that inflation pressures remain elevated, with respondents citing rising input costs, particularly for materials, energy, and labor. The report also highlights the impact of supply chain disruptions on businesses, leading to higher costs and longer delivery times.
RBA Outlook
The report provides insights into the RBA’s outlook, noting that the central bank is likely to continue raising interest rates in the coming months to curb inflation. The report emphasizes the need for the RBA to balance its commitment to controlling inflation while supporting economic growth.
The commentary from the report suggests that businesses are facing challenges in managing rising costs and supply chain disruptions. These challenges may weigh on business sentiment and investment, potentially impacting overall economic growth. The RBA’s ongoing interest rate hikes are expected to have a cooling effect on inflation but may also slow economic activity.
