U.S. households have seen their costs for groceries, gas, housing and other items soar this year, and this summer overall prices jumped more than they have since 2008, reaching a year-over-year inflation rate as high as 5.4%. Not only did consumer demand return, but fallout from the pandemic strained supply chains and created labor shortages, pushing businesses’ own costs higher. Indeed, the biggest factor cited by the businesses surveyed was “favorable market conditions,” followed by higher costs for materials and then for workers. And now, as the holiday shopping season approaches, it looks like many consumers can expect things to get even pricier. “Inflation is now a greater concern as price hikes are expected to keep up with higher input and labor costs,” PNC wrote in a report on the survey. PNC, a Pittsburgh-based bank, commissions the survey twice a year. Artemis Strategy Group interviewed 500 U.S. businesses with self-reported revenue of $100,000 to $250 million between Aug. 2 and Aug. 31. The sampling error is plus or minus 4.4%. Have a question, comment, or story to share? You can reach Medora at medoralee@thebalance.com.
