Australian Prices Going Up for Christmas

Australians are likely to have to pay more for goods and services around Christmas, as falling company profits force businesses to raise prices.

The finding comes in a business expectations survey, by Dun & Bradstreet.

Dun and Bradstreet’s Damien Karmelich says people need to prepare themselves for higher prices over the coming months.

“Sales and profit expectations are down. Expectations for employment growth are at their lowest levels since June of 1991, but selling price expectations are actually now at their highest levels since June 1988,” he said.

“What that’s telling us is that as businesses are expecting their sales and profits to drop, they’re going to try and recoup some of that money by raising prices.”

The survey also warns that high petrol prices will continue to hinder business profits because of the weakening Australian dollar.

Mr Karmelich says the recent global economic turmoil means Australians will continue to pay more for fuel.

“What we’re finding is of course, is that the oil price has been declining, and that is having some positive benefits. But as the Aussie dollar has also declined, it’s limited the amount of relief people are seeing at the bowser, both the consumers and businesses,” he said.