US Small Business Inflation Worries Hit Highest Since Oct 2024
In June, 21% of US small business owners cited inflation as their top problem, the highest reading since October 2024. The share has surged 10 percentage points over the past year, and the proportion of firms raising average selling prices rose to 38%, the highest since January 2023.
A growing number of US small businesses are feeling the strain from persistent inflation. According to the latest data, 21% of small business owners reported inflation as their single most important business problem in June — the highest level since October 2024.
This marks a sharp increase of 10 percentage points over the past 12 months. For context, the reading peaked at roughly 36% in 2022 and at about 21% during the 2008 Financial Crisis, showing that current pressures are approaching crisis-era levels.
To cope, more firms are passing costs to consumers. The share of small businesses that raised their average selling prices climbed 2 percentage points in June to 38%, the highest since January 2023. This marks the fourth consecutive monthly increase and is more than double the long-term average of approximately 14%.
The data underscores the ongoing price pressures facing the US small business sector, with inflation remaining a key concern.
Source: The Kobeissi Letter