Stubborn inflation has prompted the state's peak business body to urge governments to ease cost pressures on businesses.

Business NSW – which represents about 50,000 business across the state – says today's inflation numbers are a wake-up call. 

The figures show an annualised inflation rate of 3.8 per cent for December, well above the RBA's target band of 2-3 per cent.

CEO Daniel Hunter said: “These figures challenge any hope of rate relief in February, putting the brakes on consumer spending and eroding business confidence even further.

“Reducing the cost of doing business must be the priority, with insurance, tax and energy the three pressure points needing urgent attention.”

Business NSW is calling on the Federal Government to ensure spending remains below 25 per cent of GDP. 

Federal government spending is currently around $786.6 billion (26.9% of GDP).

“Both state and federal governments must scrutinise every dollar they spend and avoid policies that risk overheating the economy”, Mr Hunter said.

“Government needs to reduce red tape in housing construction, speed up planning approvals, and reform inefficient taxes such as payroll tax and stamp duty.”

About Business NSW 

Formerly the NSW Business Chamber, Business NSW is the peak policy and advocacy body which has been representing businesses in NSW since 1826. We represent almost 50,000 businesses.

MEDIA CONTACT: BEN PIKE – 0429 993 822