Inflation is back

Posted On: Thursday, May 15th, 2014  In: Blog

Inflation is back

I just paid extra for my cappuccino. My pool service also increased his invoice. Inflation is definitely back. Hopefully not the over 10% rate that is now only remembered by us senior business people. These increases will only appear in the ABS’s figures for the March quarter that will be released in April. Will that be too late for you? Will you have thus paid more to your suppliers and have not recovered this from your customers? If you are not adjusting your prices then you will lose your profit margin. Inflation in the dark old days became a vicious cycle. Prices went up thus wages had to go up thus costs went up and thus prices rose again. This is a new phenomenon. If you were not there in the last inflation spiral then you need help understanding what happens. Give us a call!


 

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