Bidenflation: Small Businesses Report Declining Optimism and Rising Prices, Inflation Gauge Highest Since 1974
A gauge of prices at small businesses hit its highest level since 1974 in January, data from the National Federation of Independent Business showed Tuesday.
The tidal waves of inflation, supply chain bottlenecks, and shortages of both goods and workers that have soaked the U.S. economy have hit small businesses especially hard. Many larger businesses often have deep connections to suppliers and distributors, as well as more leverage when it comes to negotiating over prices, that smaller, independent businesses lack.
Twenty-two percent of small business owners say inflation is their most important business problem, according to the NFIB’s January survey. That matched the December level, which was the highest level since 1981.
The net percentage of owners raising average selling prices jumped four points to 61 percent, the highest reading since the fourth quarter of 1974.
“More small business owners started the New Year raising prices in an attempt to pass on higher inventory, supplies, and labor costs,” NFIB Chief Economist BIll Dunkelberg. “In addition to inflation issues, owners are also raising compensation at record high rates to attract qualified employees to their open positions.”- READ MORE
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