Every month, the National Federation of Independent Business (NFIB) asks its members to name their most pressing problem. The survey lists lots of possible answers - taxes, regulations, labor, and more - but as of January, 20% of small businesses said inflation is "the single most important problem" in their business. That's down from about 25% of small business owners a year ago, but it's still a historically high level of concern about inflation.
"Anecdotally, we hear from small business owners all the time about their struggles to deal with inflation pressures. Whether it's in the product that they sell or increased compensation, it spans all the different types of costs they have to absorb," says Holly Wade, executive director of NFIB's Research Center.
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