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The National Federation of Independent Business said a net 59% of small-business owners increased prices of good and services last month. That was the highest figure since 1978.
Small and large businesses alike are coping with major shortages of labor and business supplies that emerged during the pandemic. They are paying higher wages and material costs and passing them along to their customers.
The cost of living jumped again in November and pushed the rate of U.S. inflation to a 39-year high of 6.8%.
Finding qualified workers is one of the biggest hurdle of small businesses. A record number say they have boosted wages and benefits, but they still can’t find enough people to hire.
The ongoing shortages have dimmed the hopes of small-business owners. The NFIB’s small business optimism index edged up 0.2 percentage points to 98.4 in November, but it’s still depressed and well below its recent midsummer peak.
“Owners are also pessimistic as many continue managing challenges like rampant inflation and supply chain disruptions that are impacting their businesses right now,” said NFIB chief economist Bill Dunkelberg.
The share of small-business owners expecting an improvement in the next six months has declined sharply in the last four months, suggesting they don’t expect much improvement anytime soon.
