Falling Australian dollar impacting business costs
After easing in the lead-up to Christmas, prices are expected to begin rising this year with 31 per cent of businesses intending to lift their selling prices in the first quarter, while just four per cent will discount.
Dun & Bradstreet’s monthly Business Expectations Survey shows the Selling Price Index for the March quarter lifting to 26.3 points, up from 17.5 points last quarter and 19.5 points last year, to reach its highest level since the third quarter of 2009. The index measures the difference between the percentage of businesses expecting to increase prices minus the percentage intending to decrease prices.
The lift in the Selling Price Index continues a steady trend that commenced during the middle of last year and can be tied to a similar movement in the level of the Australian dollar; suggesting that the weakening currency is leading to higher input costs for many local firms. Indicative of this effect, 40 per cent of wholesalers are planning to raise their prices in the coming three months, while just one per cent will reduce.
To read the full release of the D&B Business Expectations Survey click on this link: 2015 Business Expectations Survey – Q1 2015
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