Price-mageddon: Historically High Number of Small Businesses Forced to Raise Prices
Small Biz Owners Grow Discouraged, Worry about Biden Tax Increases
Small business owners are getting crushed by Bidenflation, with prices rising to historic highs and a record number of small businesses being forced to consider price increases, which are passed onto consumers.
Cost of Wholesale Goods Rise Higher Than Expected
- Wholesale prices increased at their quickest pace on record in November, adding to the strain on budgets caused by headline consumer prices running at their fastest pace in nearly 40 years and core inflation the hottest in about 30 years.
- The Producer Price Index (PPI) shows a record price increase for producers, by 9.6 percent, above expectations and the largest increase since first calculated in November 2010 when the series started.
- This means small businesses have to pay more to acquire goods to sell to customers – and likely have to pass on the price increases.
Small Businesses Anticipate Having to Increase Prices
- The National Federation of Independent Business (NFIB) finds that the net percent of owners raising selling prices increased six points to a net 59 percent (seasonally adjusted), the highest reading since October 1979. Seasonally adjusted, a net 54 percent of owners plan price hikes, up three points from October and a 48-year record high reading.
Small Business Optimism Plummets
- NFIB reports that the outlook for business conditions is at a historic 48-year record low reading “as lawmakers propose additional mandates and tax increases,” particularly amidst “rampant inflation and supply chain disruptions that are impacting their businesses right now.”
- Business Conditions: Owners expecting better business conditions over the next six months decreased one point to a net negative 38 percent , tied for the 48-year record low reading.
- Small business owners are especially worried about significant tax increases in Democrats’ $5 trillion tax-and-spend bill.
READ: Brady: Biden’s $5 Trillion Bill Includes Over $400 Billion in Small Business Tax Hikes