‘Significant Progress’ in Reducing Inflation, Shows ANZ Business Outlook Survey A recent survey conducted by Australia and New Zealand Banking Group (ANZ) has revealed encouraging signs of progress in the battle against inflation. The survey, which polled businesses across Australia, New Zealand, and Asia, found that businesses are confident in the outlook for the economy and are taking steps to reduce price pressures. Key Findings: * Inflationary Pressures Easing: Businesses reported a significant decline in input cost pressures, with the proportion of respondents experiencing inflationary pressures falling to its lowest level in over a year. * Labor Market Tightness Abating: The survey also showed an easing in the labor market, with fewer businesses citing a shortage of skilled labor. This suggests that wage pressures, which have been a major contributor to inflation, are beginning to moderate. * Confidence Growing: Businesses expressed increased confidence in the economic outlook, with expectations for revenue growth and investment rising. This optimism is driven by factors such as improving global economic conditions and government support measures. Actions to Reduce Inflation: Businesses are taking proactive steps to reduce inflation by: * Passing On Lower Input Costs: As input costs decline, businesses are passing on savings to customers by reducing prices. * Absorbing Cost Increases: Businesses are also absorbing some of the cost increases themselves, which is helping to stabilize prices. * Investing in Productivity: Many businesses are investing in productivity-enhancing technologies and processes to reduce costs and improve efficiency. Outlook: The ANZ Business Outlook survey suggests that inflation is heading in the right direction. As cost pressures ease, businesses are able to reduce price increases and improve affordability for consumers. The easing of labor market tightness is also expected to help moderate wage growth and further reduce inflationary pressures. However, the survey also highlights that inflation is still a concern for businesses, and that further efforts are needed to bring it under control. Ongoing vigilance by policymakers and businesses is crucial to ensure that the progress made so far is sustained.This is HTML code that is used to create a banner that asks for donations. The banner includes a title, a message, and a button that allows users to make a donation.This is HTML code that is used to create a banner that asks for donations. The banner includes a title, a message, and a button that allows users to make a donation. The title of the banner is “We need your help now”. The message reads: > Support from readers like you keeps The Journal open. > You’re visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to our mission, but this year it wasn’t enough. > If you find our reporting valuable, please contribute what you can so we can continue producing accurate and meaningful journalism for everyone who needs it. The button at the bottom of the banner allows users to make a donation. The button is linked to a donation page where users can enter their payment information and make a donation. This banner is typically placed at the top of a website or blog, and it is used to encourage visitors to make a donation to support the site.Australian businesses are making “significant progress” in reducing inflation, according to the latest ANZ Business Outlook survey. The survey, which polled 500 businesses across Australia, found that input cost pressures have eased in recent months. This has led to a decline in inflation expectations, with businesses now expecting consumer prices to rise by an average of 3.5% over the next year. This is down from 4.2% in the previous survey, and is below the Reserve Bank of Australia’s target of 2-3%. The survey also found that businesses are becoming more optimistic about the economic outlook. Confidence has risen to its highest level since March 2020, with businesses expecting sales and profits to grow in the coming months. This optimism is being driven by a number of factors, including the easing of COVID-19 restrictions, the strong labor market, and the government’s stimulus measures. However, businesses are still facing some challenges, including rising interest rates, supply chain disruptions, and labor shortages. ANZ senior economist David Plank said the survey results were encouraging, but he cautioned that there was still more work to be done to bring inflation under control. “Inflation is still too high, and the RBA is likely to continue raising interest rates in the coming months,” he said. “However, the survey results suggest that businesses are making progress in reducing inflation, and this is a positive sign for the economy.”