Inflation remains a headache for small business owners
Inflation remains a top concern for small businesses, which reported lower optimism in February
NEW YORK (AP) — Inflation remains small businesses' chief worry, according to a new survey showing their optimism fell in February.
The National Federation of Independent Businesses' Optimism Index fell to 89.4 in February. It's been below the 50-year average of 98 for 26 straight months. Twenty-three percent of small business owners said inflation was their top problem, up three points from January, when labor quality was the chief concern.
Inflation remains elevated. Prices rose 0.4% from January to February, up from the previous month’s 0.3% pace, the Labor Department said last week. Compared with a year earlier, consumer prices rose 3.2% last month, slightly higher than in January.
Excluding food and energy prices, so-called “core” prices also climbed 0.4% from January to February. That's faster than what's needed to bring inflation down to the Fed’s 2% target. Core inflation is watched closely for a read on where inflation is likely headed.
