Businesses and industry remain very concerned at persistent inflation according to Australia’s largest and most representative business network.

The Australian Chamber of Commerce and Industry was responding to the June quarterly inflation figure of 1 per cent driving annual inflation up to 3.8 per cent from 3.6 per cent.

ACCI’s Chief of Policy and Advocacy David Alexander says today’s result is symbolic of the challenges facing business right now.

“The persistence of elevated inflation is a concern and reflects that business conditions in Australia continue to be a challenge,” Mr Alexander said.

Mr Alexander called on the Reserve Bank to exercise “fine judgement” when it next meets to decide on whether to increase rates or leave them on hold.

He’s also pointed to stalled rates of productivity and its role in driving up inflation.

“The Reserve Bank has warned that wage rises not linked to productivity gains will only contribute to inflation.”

Mr Alexander said there is also a role for governments in not adding to pressure on inflation by undisciplined spending.

“Today’s result is a reminder that governments at both federal and state levels need to refocus their attention to a more disciplined fiscal policy.

“It remains a concern that elevated inflation is putting pressure on higher interest rates which in turn puts further cost pressures on business,” Mr Alexander said.