Australian Retail Industry: Inflation Rate Impact Analysis Report

This report examines the impact of the inflation rate on the growth of the Australian retail industry. It explores the challenges posed by inflation, affecting both consumer spending and business operations. The research considers the influence of inflation on retail sales, consumer income, and the overall economic landscape. The report utilizes secondary data sources, including data from the Reserve Bank of Australia (RBA) and other economic indicators, to analyze the relationship between inflation and retail sector performance. The report also references existing research and studies to support its analysis, considering the implications of inflation on the Australian retail industry's future growth and sustainability. It considers the impact on the retail businesses and the consumers and the overall economic growth of Australia.

Running head: PROFESSIONAL PROJECT
Professional Project
Name of the project
Name of the university
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1PROFESSIONAL PROJECT
Topic: Impact of Inflation rate on the growth of the retail industry in Australia
Field of research
This research will aim to examine the impact of inflation rate on the growth of the
retail industry in the past decade. The changes in inflation poses threat for the organizations
in the retail industry as it affects the income of the consumers. Moreover, it affects the cost
bases of the retail companies and causes increase in the commodity prices. The consumers
and retailer face negative impact due to the increase in the inflation rate of an economy.
However, it may vary for the retail organizations in developed countries like Australia and
the study will examine the impact based on the current scenario. It would be quite tough for
the companies in the retail industry as the market is approaching saturation.
Source of secondary data research
https://www.rba.gov.au/statistics/tables/xls/g03hist.xls
https://www.rba.gov.au/statistics/tables/xls/g01hist.xls
https://tradingeconomics.com/australia/retail-sales-annual
https://www.ceicdata.com/en/indicator/australia/retail-sales-growth
Research Question
What is the impact of the inflation rate on the growth of the retail industry?
Key search terms
Inflation rate, Economic growth, Impact of inflation on growth of the retail industry
. Behlul et al., (2017) states that inflation rate of Australia poses economic issues in the
modern environment. In case of developed countries like Australia, the slow growth of the
inflation rate signifies the slow growth of the economy. According to Hatfield-Dodds et al.,
(2015), Australian economy experiences rise in prices of products every year but when
compared to the global economy, the growth of the country is low which poses a concern for
the future. As stated by Shivakumar and Urcan, (2017), lack of inflation growth has stagnated
the growth in the incomes and spending of the consumers which poses a threat in the future.
References
Behlul, T., Panagiotelis, A., Athanasopoulos, G., Hyndman, R. J., & Vahid, F. (2017). The
Australian Macro Database: An online resource for macroeconomic research in
Australia.
Chen, Z., Devereux, M. B., & Lapham, B. (2017). The Canadian border and the US dollar:
The impact of exchange rate changes on US retailers. Canadian Journal of
Economics/Revue canadienne d'économique, 50(5), 1525-1555
Hatfield-Dodds, S., Schandl, H., Adams, P. D., Baynes, T. M., Brinsmead, T. S., Bryan, B.
A., ... & McCallum, R. (2015). Australia is ‘free to choose’economic growth and
falling environmental pressures. Nature, 527(7576), 49.
Shivakumar, L., & Urcan, O. (2017). Why does aggregate earnings growth reflect
information about future inflation?. The Accounting Review, 92(6), 247-276.