Over 50% Of Small Business Owners Will Raise Prices Amid Record Inflation

In January, PNC Bank surveyed small business owners and half of them revealed they expect to raise their prices within the next six months, blaming the pandemic and supply chain woes. PNC surveyed them before the Russian invasion of Ukraine and continued war in the region.

Fifty-one percent of small businesses said that they expect to raise prices within the next six months, while 36% expect price increases by 5% or more. A third of respondents said that supply chain issues have impacted their business, but 60% expected improvement in the next 6 months before the war between Russia and Ukraine began.

“Supply chain problems have been a big contributor to the highest inflation the U.S. has seen in almost 40 years. But it is encouraging that most small businesses see supply chain problems easing in the months ahead,” said PNC Chief Economist Gus Faucher. “The wild card now is how long high energy prices and other inflationary factors due to the Ukraine crisis last.”