The cost of living has been rising and new data has revealed it’s set to get worse.
The most recent NAB business survey found cost pressures for businesses had continued to climb after hitting record growth rates in March.
The survey revealed purchase costs for business jumped to 4.6 per cent - showing the cost of goods had continued to rise.
If businesses are struggling with the rising cost of living, that is sure to be reflected in the next inflation read next quarter.
“As expected, the Q1 CPI [consumer price index] result showed inflation has risen sharply and the April survey results show little let-up in the underlying cost pressures that are driving prices higher,” NAB group chief economist Alan Oster said.
“Price growth eased somewhat in the April survey, after hitting record rates in March, but remained high when looking at the history of the survey, supporting our expectation that inflation will remain elevated in Q2 and likely Q3.”
However, despite the rise in costs, the survey found business conditions were positive and the Australian economy was resilient.
“Still, the strong business conditions - including trading conditions and profitability - show that the economy is faring quite well and, so far, demand is holding up in the face of higher inflation,” Oster said.
The cost of living has skyrocketed, showing the biggest growth since 2002.
The CPI rose 2.1 per cent in the March 2022 quarter and 5.1 per cent annually, according to the latest data from the Australian Bureau of Statistics (ABS).
The most significant contributors to the rise in the March-quarter CPI were new property prices (+5.7 per cent), fuel (+11 per cent) and tertiary education (+6.3 per cent).
"Continued shortages of building supplies and labour, heightened freight costs and ongoing strong demand contributed to price rises for newly built dwellings,” head of prices statistics at the ABS Michelle Marquardt said when the data was released.
"The CPI's automotive fuel series reached a record level for the third consecutive quarter, with fuel price rises seen across all three months of the March quarter."