Fed: Petrol to have more impact in June quarter: Costello = 3

AAP General News (Australia)
04-26-2006
Fed: Petrol to have more impact in June quarter: Costello = 3

Mr Costello said inflation would only be affected by the increase in petrol prices
if businesses used it as justification to put up prices.

"The most important thing is that we don't get second-round effects," he said.

"I've been saying this for a long time if businesses put up other prices and seek to
use the petrol price as a justification for doing that, you would get second-round effects.

"Inflation is within our target but we cannot afford to be complacent."

He said businesses must remain competitive.

"And again in a competitive economy businesses are going to have to fight for price
increases," he said.

"They shouldn't become blase about it and believe they're there for the taking.

"This is a competitive economy and we want to continue to keep inflation low."

AAP klw/so/tnf/nf

KEYWORD: INFLATION COSTELLO 3 CANBERRA

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