Accelerating Wholesale Prices Show the Inflation Fight is Far from Over

Alfredo Ortiz, president and CEO of Job Creators Network, released the following statement in response to the July Producer Price Index, which rose by 0.8% over the last year, and core PPI, which rose by 2.7%:

“Wholesale prices facing small businesses increased at an accelerated rate last month, demonstrating that small businesses’ fight against inflation is far from over. Small businesses are especially prone to prolonged inflation because they have lower margins, fewer economies of scale, and worse purchasing agreement terms than their big business competitors. While wholesale price inflation has finally moderated due to the Federal Reserve’s aggressive interest rate hikes, small businesses now face a credit crunch as a result.”

“According to JCNF’s latest SBIQ national poll of small business owners, half of respondents rate inflation as their top concern. Two-thirds are concerned that the Federal Reserve’s interest rate hikes will reduce the access to credit they need to survive and thrive. For small businesses under the Biden administration, it’s one crisis followed by the next. To help small businesses overcome the challenges they’ve faced from Biden and his fellow Democrats, Congress should pass JCN’s American Small Business Prosperity Plan, an eight-step policy playbook to get the small business economy moving again.”