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Iran conflict pushes up food prices, but Australian retailers may absorb costs to avoid reputational damage.
A conflict in Iran is driving up food prices, threatening to increase costs for staples like milk and bread.
While analysts note inflation usually boosts profits, Coles and Woolworths face reputational damage from ongoing scrutiny over "fake discounts," making it risky to raise prices aggressively.
Facing regulatory pressure and competition from Aldi, the major retailers are expected to absorb some cost increases rather than pass them all on to consumers.
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El conflicto de Irán hace subir los precios de los alimentos, pero los minoristas australianos pueden absorber los costos para evitar daños a la reputación.