US small businesses are struggling with inflation: In June, 21% of US small business owners reported inflation as their single most important business problem, the highest reading since October 2024. This percentage has surged +10 points over the last 12 months. By comparison, the reading peaked at ~36% in 2022 and at ~21% during the 2008 Financial Crisis. As a result, the proportion of small firms that raised their average selling prices rose +2 percentage points in June, to 38%, the highest since January 2023. This marks the 4th consecutive monthly increase and is more than double the long-term average of ~14%. Price pressures are hitting US small businesses.(The Kobeissi Letter)