Inflation Rears Its Ugly Head For Small Businesses

Recent economic news has suggested that overall inflation is not really a problem for our country. But, one of the untold stories is how certain components of inflation are adversely affecting the ways small businesses operate in today’s challenging economic environment. While the core inflation rate has been relatively tame, prices that businesses pay for energy, raw materials, supplies and services have risen much more sharply. As these costs have increased, small businesses are put in a precarious position. In an economic environment where consumers are demanding to pay less, small businesses are often unable to pass along these costs to their customers. If these prices continue to climb, it may well put in jeopardy the fledgling profits of small businesses who are finally starting to climb their way out of a four-year hole.

This article from NorthJersey.com explains this unique problem in our economy in more detail.