Businesses will have to re-look at their profit margins to sustain themselves.
Suva Retailers Association Secretary Shailendra Narayan says this will enable them to progressively increase the price so that consumers do not feel the pinch of the increased cost.
Freight costs have been at their highest in recent times since the start of the COVID pandemic and subsequently the Russia-Ukraine crisis, which is affecting the cost rate of businesses.
Narayan adds that the buying power of Fijians is also not back to pre-pandemic levels.
“Overall, people have been spending during COVID-19 even though the salary was half and some were not paid. So whatever they had in their pockets and bank balance, they used it. So now they are slowly building it up. They are making wise expenses.”
Suva Retailers Association President Jitesh Patel says they hope this is not a long-term issue and they are hoping things will be better within the next six to eight months.
According to the World Trade Organization, the war in Ukraine has impacted the global economy at a critical juncture and the effect will be felt around the world, particularly in low-income countries.
It adds that governments and multilateral organizations must work together to facilitate trade at a time of sharp inflationary pressures on essential supplies and growing pressures on supply chains.