Inflation key issue impacting small business: Former SBA Administrator
Small businesses in ‘tough situation’ amid soaring inflation: Former SBA Administrator
Former Small Business Administration head Linda McMahon explains inflation’s impact on owners.
Former Small Business Administration head Linda McMahon argued on Thursday that small businesses are "'impacted most by inflation," which sits near 40-year highs.
Speaking with "Mornings with Maria" on Thursday she detailed how small business owners "are really being hurt" by the price hikes, noting that "inflation makes their cost of goods higher."
"They try to pass those costs onto consumers, but consumers can only absorb so much," she continued, pointing out that even if consumer wages increased, "inflation is eating away at that and they are really in a negative position."
The Labor Department revealed earlier this month that average hourly earnings rose by 5.5% year-over-year in March, down slightly from 5.6% the month before. The data comes amid surging inflation, which sits near 40-year highs.
Inflation cooled on an annual basis for the first time in months in April, but rose more than expected as supply chain constraints, the Russian war in Ukraine and strong consumer demand continued to keep consumer prices running near a four-decade high.
Inflation for April hotter than expected
FOX Business’ Cheryl Casone reports on the highly anticipated consumer price index report moments after the Labor Department posted the data.
INFLATION SOARS 8.3% IN APRIL, HOVERING NEAR 40-YEAR HIGH
The Labor Department said earlier this month that the consumer price index, a broad measure of the price for everyday goods including gasoline, groceries and rents, rose 8.3% in April from a year ago, below the 8.5% year-over-year surge recorded in March. Prices jumped 0.3% in the one-month period from March.
Those figures were both higher than the 8.1% headline figure and 0.2% monthly gain forecast by Refinitiv economists.
The slight slowdown in inflation last month came as energy prices declined 2.7%, driven by a 6.1% drop in gasoline (which had climbed a stunning 18.3% the prior month as a result of the Russia-Ukraine war).