THE price of bread and milk will jump in the lead up to the introduction of the carbon tax, a local business operator is claiming.
Glennie Heights Convenience Store owner Richard Thew said the Federal Government had claimed the tax would not affect essential items, but says the exact opposite is set to happen.
Mr Thew said he had received three letters in a week which stated his bread, milk and soft drink wholesale prices were going up either just before the tax was implemented on July 1, or a day after.
"I'm mostly annoyed about how the government said it wouldn't affect everything, yet the prices of essential items are all going up," Mr Thew said.
"It will affect me, but I'm not going to put my prices up because of it."
With less than two weeks until the carbon tax is introduced, Mr Thew said although companies did not admit their price increases were due to the carbon tax, it was too coincidental not to be.
"There appears to be a concentrated price increase in the last month and if it's not because of the carbon tax, then what is it?" he asked.
Mr Thew said the impact this sort of price rise would have on small businesses could be fatal.
"The Federal Government will force small businesses to close," he said.
Pensioner Ethel Austen said she was concerned as to where the price hikes would stop.
"They're not going to stop here, it will just keep going up, so yes, I am concerned," Mrs Austen said.