All signs are pointing towards inflation going up as the Middle East conflict causes business confidence to plummet. 

ANZ's latest Business Outlook survey shows most firms expect costs to increase as economic insecurity sets in. 

Most anticipate they'll raise prices in the next three months.

Retail and construction had the sharpest slides in confidence. 

Auckland Business Chamber Chief Executive Simon Bridges told Ryan Bridge after the tariffs last year, this feels like a sense of deja vu.

He says this survey was from early days of the war - so things will likely get worse.

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