Small Business Optimism from the National Federation of Independent Business fell to an 11-month low in January as inflation continues to be challenging. A net 61% of small business reported raising prices over the past three months, the highest reading since 1974 (bottom graph). Furthermore, 22% of small businesses stated that inflation was their single most important problem, the highest since 1981. All in all, conditions for an inflationary environment remain in place providing further runway for the Federal Reserve to maintain its hawkish stance.
