“We don’t need directives from the government to do what we do,” he said. “There are various laws that could kick in. In addition, we’ve got the ability to name and shame people, which we did during the RAT testing issue.

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“We will keep an eye on the companies, but let’s just understand what’s going on here – massive world events causing price increases. We import over 90 per cent of our petrol, so trying to think that you can do something when you have international prices going up is just looking in the wrong place and misinforming the public in my view.”

Woolworths said it is using the food and grocery code to assess SPC’s recent request to increase costs for a number of products. So far, the supermarket has increased retail prices on red meat and packaged groceries including Coke and Fanta.

University of NSW economist Richard Holden said it was likely some industries would take advantage of the opportunity to increase prices without justification. “If people’s expectations that prices are going to increase a lot then it makes it easier for businesses to justify those price increases, creating a vicious cycle,” he said.

Economist Saul Eslake said most goods that needed to be transported were increasing because of higher petrol prices. He said building materials like steel and timber along with wheat-based and dairy products were among products that had increased in cost.

But any industry or region where businesses had little or no competition had “greater power to set prices as they wish irrespective of movements in costs”.

“In a capitalist economy the only justification a business needs for raising prices is that it can, and it can find customers willing to pay them,” Mr Eslake said.

Businesses feel the squeeze

Joseph Ambour, who has been running Ambour Hardware in Redfern for 51 years, was keeping prices steady because he was paying low rent to a family member who owned the building.

“Everyone comes in and says your prices are better than everybody else,” he said. “I can’t put the prices higher because the people won’t buy it in the Redfern area. A customer here can’t afford to pay extra than normal. That’s why they come to me to buy one screw instead of buying a packet.”

Mark Baylis from Marlies Eatery in North Sydney posted a note to his customers to say he was “super sorry” to let them know that menu prices would increase from April.

“In the last six months we’ve had to increase our pricing between $2.50 to $3 for our food,” he said. “It wouldn’t be feasible for us to operate if we were just to absorb costs.”

Mr Baylis said he was paying close to double the $15 he previously paid for a market bunch of coriander.

“We are now starting to touch $30 for a bunch. The floods have really driven the price up, so it can’t just be blamed on the pandemic and the lockdowns,” he said. “We started paying $16 to $17 a kilo for smoked brisket, and we are about to be slugged $25 to $30 a kilo.”

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