Survival Strategy for Your Small Business Amid a High Inflation Environment

“60 may be the new 40 but the 100-dollar bill is the new 20.”

It seems these days everybody’s talking about inflation. Things are getting so expensive that a dozen eggs now cost $3.99 at my favorite grocery compared to a month ago when it retailed at $2.90. At the rate the prices of goods are skyrocketing, pretty soon I will have to put a tank of gas on layaway.

It’s been nearly 30 years since inflation in the U.S. exceeded 4% and nearly four decades since the country experienced an extended run of rising prices. Although U.S. inflation eased to 7.7% in October from a high of 9.1% in June — the overall impact on day-to-day living has been substantial including subsequent interest rate increases by the Fed.

So, what is driving inflation?

1. Bad monetary policy — the central bank “printing too much money” which devalues the currency relative to the value of real goods and services — driving prices up.
2. Corporate Profits — companies have been increasing their prices — driving prices up.
3. Rising Inflation Expectations — a psychological explanation, which holds that if the public thinks prices will rise, that alone can drive prices up.
4. Supply Constraints — bottlenecks in the…