Go back seventy years and a candy bar cost five cents.
As they say, a dollar doesn't buy what it used to. What is inflation anyway and why should you care? Inflation measures the rise in prices over a set period. By nature, confidence goes a long way for entrepreneurs, and fortunately, readings remain higher than they were during and after the so-called Great Recession, when the Optimism Index regularly scored in the 80s.
That's not to say that small businesses lack assurance. Historically, the index has averaged 98 points over 48 years, but came in at 95.7 in February, following a 97.1 January reading. The NFIB's overall Optimism Index has been a bit pessimistic these past few months. Construction, manufacturing, wholesale and retail saw the most frequent price hikes. Ultimately, 68 percent (seasonally adjusted) of business owners reported raising average selling prices - the highest reading seen in nearly 50 years. Many small businesses owners are coping with challenges by increasing prices, which in turn further spurs inflation. The 4-point increase from December marked the highest reading since 1981. In fact, 26 percent of business owners surveyed in the National Federation of Independent Business's Small Business Optimism Index reported that inflation was their most pressing problem. Ask small business owners what's on their minds there's a good chance you'll hear about inflation.
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