New research shows the cost of running a small business has risen by almost 25 per cent since the start of the COVID-19 pandemic, with expectations it will keep climbing to 27 per cent by the end of the year. The increase comes as a surprise lift in household spending in June complicates the outlook for interest rates, ahead of the Reserve Bank's meeting next week.
Cafe owner shares cost pressures
Reporter Natalie Poyhonen spoke to Sydney cafe owner Gerardo Barrios, who serves coffee grown from his homeland Honduras. Barrios explained the biggest costs to his business over the last 12 months or so, highlighting the financial strain on small operators.
The research indicates that small businesses are facing sustained cost increases, with the trend expected to continue. The data comes at a critical time for the Australian economy, as the RBA considers its next move on interest rates.
