Prominent Australian businessman Gerry Harvey believes businesses should not hesitate to pass on cost increases to consumers through higher prices.
This statement comes in the wake of a recent warning from the Reserve Bank of Australia (RBA) about rising inflation.
Harvey, the co-founder of Harvey Norman, one of Australia’s largest retail chains, emphasized that it’s essential for businesses to maintain profitability even in the face of inflationary pressures.
He argued that absorbing higher costs could lead to reduced investments and job cuts, ultimately hurting the economy.
The RBA had cautioned about the risk of inflation exceeding their target range, prompting speculation about potential interest rate hikes. Harvey’s perspective counters this, as he believes that passing on cost increases to consumers is a responsible and necessary step for businesses to stay financially viable.
In a time when inflation concerns are growing, Harvey’s stance raises crucial questions about the delicate balance between businesses’ profitability and consumers’ purchasing power, leaving many to wonder if higher prices are an inevitable consequence of rising costs.
