US inflation isn’t going away. Small businesses must plan ahead

theguardian.com:

Inflation is the top challenge facing small businesses this year, according to a report issued by the National Federation of Independent Businesses this past month, with a whopping 91% admitting that rising prices are having either a “substantial” or “moderate” impact on their companies.

The US Chamber of Commerce says that nearly seven in 10 small businesses have raised prices to cope with inflation, which is also considered their “dominating challenge”. Sixty-five percent of small business respondents in a Goldman Sachs study said rising input costs have forced them to raise the price of their goods and services this year, with almost 80% saying the economy has gotten worse over the past three months.

If you’re having inflationary challenges in your business, you’re not alone. However, there is some good news for you. And, unfortunately, some bad news. The good news is that inflation appears to be plateauing.

Prices for core materials such asindustrial chemicals, construction supplies, copper, aluminum, plastics, packaging, iron and steel and even agriculture products like fertilizer and processed feeds are either leveling off or not rising quickly. The price of lumber products has dropped significantly from their highs last year.Oil prices are down 30% from earlier this summer.

This is partly because the world’s supply chain is beginning to show signs of normalcy (port traffic in Long Beach, California, is down to 84 ships off the coast, significantly less than during the pandemic, mass lockdowns in China have ended and the Baltic Dry Index, a key measure of freight costs and shipping demand, has fallen almost 30% since the beginning of the year). There’s also been a general slowdown in the world’s demand for goods which,