Consumers and retailers need to prepare for further price increases in groceries and household items as inflationary pressures grow, says The National Retail Association (NRA).
According to data released by the Australian Bureau of Statistics on Wednesday, the cost of vegetables has risen by 7.3 per cent, fruit by 3.7 per cent and household items by 2.5 per cent in the June 2022 quarter alone.
NRA chief, Dominique Lamb, warned consumers must prepare for a “long period of inflation”.
“The retail community continues to reel from Covid and flood disruptions, as well as the conflict in Ukraine which are all contributing to rising costs worldwide.
“Retailers may have to extend further price hikes on to consumers to meet to current costs of doing business.”
Lamb added applying interest rate rises to meet rising cost pressures will have a limited impact as these cost pressures are driven from the supply side.