The number of small businesses raising prices on consumers in order to offset red-hot inflation rose to the highest level in 48 years, according to a new survey published on Tuesday.
The National Federation of Independent Businesses, a Tennessee-based association of small business owners, found that the net percent of owners raising average selling prices rose to 61% in January, a four-point increase from the previous month and the highest reading since the fourth quarter of 1974. Another 50% of firms said they boosted wages amid recent difficulty in attracting new workers.
Meanwhile, the NFIB's index measuring optimism among small businesses dropped last month to 97.1 – an 11-month low – as owners confronted high inflation, worker shortages and uncertain future economic conditions. Inflation remains a top concern for small businesses: 22% of owners reported that higher consumer prices is their single most important problem. That is the highest level since 1981.in a generation, with the consumer price index climbing 7% in December from a year ago, according to a Labor Department report released last month, marking the fastest increase since June 1982.
Traffic passes a downtown Los Angeles gas station where a gallon of gas costs over $6 on Dec. 10, 2021.
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