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A survey of Australian businesses has revealed that inflationary pressures remain high, with prices expected to increase this year.
Dun and Bradstreet has released its February survey of 1,200 manufacturing, wholesale and retail businesses in Australia.
Businesses say the impact of the drought is beginning to ease but petrol prices are a key concern.
Dun and Bradstreet's economic consultant, Duncan Ironmonger, says despite businesses charging more this year, it is not expected to translate into profits.
"Sixty-four per cent of business executives surveyed expect their selling prices to be higher in June than in the June quarter last year," he said.
"And in spite of some improvements, the growth in profits is still negative, so although sales are expected to to rise for the first time in four quarters, there's still some negative expectations for profits."
Mr Ironmonger says low profits and sales will effect employment.
"The employment expectation has been weak -- our index is minus two, which is composed of 9 per cent going to have more staff in June and 11 per cent to have fewer, so there'll be some lay-offs amongst the staff in our survey," he said.
- RADIO AUSTRALIA
