Price Hikes Becoming More Local

Cadrene Heslop

Last month, inflation rates were at a 40-year high of 7.9%. The February figures were the sharpest increase since 1982. This percentage got propelled by surging gas, food, and housing costs. (source)

In March, inflation rates surged to 8.5%. Predictions by economists were off by 0.1% after expecting a rate of 8.4%. It is the fastest increase since January 1982, when inflation hit 8.4%. (source)

The inflation rate is overshadowing the other woes small businesses face. America continues to face labor and supply chain challenges. But high prices are now the top problem cited by small retailers to the National Federation of Independent Business. This feedback got revealed in the Small Business Optimism Index for March. Inflation got named the most pressing challenge by 31% of responders. This figure is the highest reading since early 1981. (source)

Bill Dunkelberg is the NFIB chief economist. Dunkelberg said, "Inflation has impacted small businesses throughout the country and is now their most important business problem."

How will small businesses cope with high prices?

The respondents said they are passing on the hikes to consumers. 72% reported increasing their average selling prices. And this number is a new record in the survey's history. Some industries reported more frequent fee hikes. These include the wholesale sector (84%), construction (83%), agriculture (78%), and retail (77%). (source)

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*Disclaimer: This article is for informational purposes only*

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