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Queensland businesses are facing significant challenges due to repeated interest rate hikes and higher operational costs, leading them to raise product prices. The Kuhns, who run an organic egg business in Tiaro, report that their monthly mortgage payments have increased by roughly $1,000, and they must pass on some expenses to customers despite the risks involved. Christopher Hall, a Hervey Bay honey producer, also contemplates raising his raw honey prices due to soaring petrol and plastic container costs. An economics expert predicts tough conditions for businesses could persist until 2028 as governments curb spending to combat inflation.
Written locally by qwen2.5:14b on 2026-10-02,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
Queensland businesses are grappling with increased expenses due to rising interest rates and a ban on card surcharges. A recent report by Business Chamber Queensland reveals that 95% of businesses are experiencing higher fuel prices, while at least 60% are facing elevated costs from freight, transport, and cash flow issues. The Kuhn family, who run an organic egg business in Tiaro (220 km north of Brisbane), exemplify the struggle as they try to absorb rising costs without passing them onto customers, which has become increasingly difficult. An economics expert predicts that these tough conditions and higher prices could persist until 2028. The situation echoes the lowest level of economic confidence since the Global Financial Crisis, highlighting the significant impact on small operations in Queensland.
Written for “Economic Inflation Impact” on 2026-10-05,
grounded in this article and the 0 other(s) covering the same event.
In short:
Queensland businesses say they are being forced to push up prices for customers as they battle to cover increasing expenses.
asserted
they → say → expenses
They are warning that repeated interest rate hikes and a recent ban on card surcharges will put pressure on small operations.
asserted
hikes → warn → operations
An economics expert says the tougher conditions and higher prices could stretch until 2028.
uncertain
conditions → say → 2028
Nick and Amanda Kuhn run an organic egg business in the rural town of Tiaro, about 220 kilometres north of Brisbane.
asserted
Kuhn → run → Brisbane
The pair say their family-run operation has been struggling to slow the "snowball effect" of rising costs.
asserted
operation → say → costs
"There comes a point where you just can't keep wearing the cost because you're wearing so much but you can't keep charging more for your product," Mr Kuhn said.
asserted
Kuhn → come → product
A recent report from Business Chamber Queensland found confidence in the economy was at its lowest level since the Global Financial Crisis.
asserted
confidence → find → Crisis
It found 95 per cent of businesses were feeling an impact of higher fuel prices, with at least 60 per cent reporting higher costs from freight, transport and cashflow issues.
'Less profit for the business'
asserted
cent → find → business
The Reserve Bank lifted the cash rate for the fourth time this year on Wednesday, pushing rates to their highest level since 2011, at 4.6 per cent.
asserted
Bank → lift → cent
Mr Kuhn said his home mortgage repayments increased by "roughly $1,000 a month", due to the hikes.
asserted
repayments → say → hikes
"It's harder to service loans.
asserted
It → service → loans
It's harder to get new loans if you want equipment or other things," he said.
asserted
he → get → equipment
Businesses have now been banned from adding a surcharge to card payments, which Mr Kuhn said helped cover expenses including petrol and wages.
asserted
Kuhn → ban → petrol
"It's going to cost us a couple of thousand dollars to wear that, it's less profit for the business," he said.
asserted
he → go → business
To recoup any losses, Mr Kuhn told customers there would be a price hike on egg cartons.
asserted
Kuhn → recoup → cartons
Hervey Bay honey producer Christopher Hall was also grappling with whether to increase the price of his raw honey buckets to $16 per kilogram.
asserted
Hall → grapple → kilogram
"In the previous 10 years we've just absorbed the increased costs because it's important to maintain honey as cheap as I possibly can," Mr Hall said.
"
uncertain
Hall → absorb → honey
We simply can't do that anymore."
asserted
We → do → that
Mr Hall said the extra revenue would cover rising petrol prices and growing cost of plastic containers, which is up by nearly 40 per cent this year.
asserted
which → say → cent
Tough times ahead
CQ University regional economics development professor John Rolfe said it could take up to 18 months for this week's interest rate hike to "wash through the system".
uncertain
hike → say → system
Professor Rolfe said businesses needed to make calculated spending decisions to ensure they can survive.
asserted
they → say → decisions
"Be prepared to make an early call about cutting costs so they don't get caught out," he said.
asserted
he → make → costs
But Professor Rolfe said not to expect relief any time soon.
asserted
Rolfe → say → relief
"Governments are under pressure to not spend as much to try and get inflation down," he said.
asserted
he → spend → much
Despite the struggles, Mr Hall said he and his business will endure.
asserted
he → say → struggles
"We have had to increase prices to stay afloat but small producers do make the world go round," he said.
asserted
he → have → prices
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