What you should be doing now to plan for a 1970s style of inflation

In the wake of the Covid-19 pandemic and the war in the Ukraine, there is going to be a continuing disruption to supply of materials and uncertainty around subsequent price increases. We have all seen the recent effects on prices of materials in the building industry.

Costs are rising internationally, and we are not immune to these inflationary pressures. On the contrary, inflation is likely to be here to stay in Australia for some time. Of particular concern to us all, is the fast-rising fuel prices, which we have little option but to accept.

Businesses should begin modelling situations where fuel prices are as high as $3.00/litre and see how this would impact their bottom line. The flow-on effect of such increases will affect everything from supplies, rent and wages.

Don’t wait for it to happen, do some scenario planning now around what effect a $3.00/litre fuel price would look like to your business.

Contact your accountant now to get some assistance to plan for this eventuality. Be future ready!

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