ARA calls for cut in cash rate
The Australian Retailers Association (ARA) has called for an interest rate cut in November due to a myriad of cost increases, including a 15 per cent jump in electricity prices.
ARA executive director Russell Zimmerman says that the carbon tax and the massive increases that come as a result are affecting consumers.
"Meanwhile consumers have taken a massive hit with a 15 per cent increase in electricity costs, and the rising inflation rate will not help keep even necessities such as food and fuel affordable as they head towards Christmas," he said.
He goes on to say that the carbon tax is increasing prices across the board and retailers have to increase what they are charging in order to derive some sort of profit.
Zimmerman says a rate cut on Melbourne Cup Day (November 6) could be the impetus for consumer confidence and might be the difference between a tight Christmas and a more lavish holiday period.
It comes as recent inflation figures put a dampener on a rate cut for next month. An 18 month high of a two per cent jump in consumer prices means that any change by the RBA looks less likely.
Posted by Charlie Moore