The ABS reported a 1.2 per cent rise in the Consumer Price Index during the September quarter, lifting the annual headline inflation rate to 5 per cent.

With printing companies commonly using inflation data to adjust supply-related contracts, Printing Industries’ national manager for policy and government affairs Hagop Tchamkertenian (pictured) has urged businesses to be mindful of the consequences.

“In recent times we have seen considerable cost pressures on our industry emanating from increased raw material prices and labour costs,” said Tchamkertenian.

“With printed matter remaining sensitive to price increases, printing businesses face the prospect of reduced print volumes associated with price increases”.

“Printing businesses need to assess whether by passing on the cost increases to their clients the net effect will still be positive or not. In other words, will increased revenue brought about by price increases be sufficient to offset the corresponding fall in revenue due to reductions in print volume.

“The other issue faced by printers is whether to pass on the costs fully or proportionally. Again this decision will vary from business to business.”

The Reserve Bank of Australia has indicated that inflation is expected to worsen in the short term before improving.

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