Record-High Producer Price Index Inflation Wages War on Small Businesses

Today, the Labor Department announced that the Producer Price Index rose by 7.8 percent in July on a year-over-year basis — the highest increase on record. Alfredo Ortiz, president and CEO of the Job Creators Network, released the following statement:

“Record-high producer prices are a major impediment to bringing small businesses back and bringing the economy and labor market back to their pre-pandemic peaks. Skyrocketing inflation on the goods businesses need to function causes an accounting nightmare and forces entrepreneurs to continually raise their prices on consumers just to maintain their profit margins. The Federal Reserve claims this high inflation is merely transitory, but it’s all too real for beleaguered small businesses trying to remain profitable while facing threats from all sides. This unprecedented inflation is a major front in Democrats’ war on small businesses. It is the result of Democrats’ reckless spending that is overheating the economy and causing pervasive supply-chain disruptions. President Biden and Congressional Democrats’ proposed several trillion dollars in additional spending will only fuel this inflationary fire. Combined with sky-high consumer prices, record-high producer prices are combining to give hardworking small business owners and consumers a “Biden pay cut” in the form of lower real earnings. Small businesses and ordinary Americans must make their voices heard that no more additional Congressional spending is acceptable if we want to address inflation and bring small businesses back.”