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Economists say inflation isn't going anywhere, small businesses struggle with high prices

We're all being impacted by inflation and higher prices. Small businesses are also feeling the impact, and they worry about what that could mean for their future.

LITTLE ROCK, Ark. — Inflation is something that has affected all of us. We have all noticed prices rise on everything from gas, to groceries. Not only has inflation impacted our daily lives, but small businesses are also feeling its impact. 

Daniel Bryant, owner of Hill Station, said they're feeling the impact of inflation, everywhere. He also said that it's not just him, but many other restaurant owners as well, that are in a tough spot.

Bryant said they have had to raise prices to make a profit, or at least break even, but they worry that if they raise them too much, they could potentially lose customers.

"The problem is, even though customers have been willing to pay higher prices, there's a limit," he said.

That limit could be coming sooner rather than later, since economists, like John Anderson with the University of Arkansas, don't see high prices going away anytime in the near future.

"Something that takes a couple of years to wind up, doesn't usually wind down in a month or two," he said.

While Anderson said he may be more on the pessimistic side, he believes that consumers and businesses should brace themselves for what's to come.

"I really do think that the smart thing to do is to plan for historically elevated rates of inflation, for at least the next year," he said.

Anderson said that it's not fair to blame it all on what has happened overseas, since supply chain issues and post-pandemic life are all driving factors. He said, the toughest part, is that it's not an easy fix.

"When you're dealing with inflation, it's kind of like you're squeezing the balloon, if we try to deal with inflation here, that's going to have implications in other places that we probably aren't going to like," Anderson said.

Some of those places, most of us don't like, is how much we are having to pay for food. Bryant said restaurant owners are also in the same boat.

"It's hard to pick one thing. I mean, the paper goods for sure, you know, plastic cups. Things that we used to pay $50 a case for are now $150, $200 a case," he said.

It's come at a very rough time too, according to Bryant, since they continue to battle supply and staffing shortages.

"We're all having to compete with one another to provide the best environment we can and pay them the most money that we can, but that gets harder when you're not making any money, and so you can just sort of see, it's sort of a cycle," he said.

A cycle, that Bryant believes, started over two years ago with the pandemic and has just been a slow uphill climb since.

"You got to be looking long term to look for some daylight," he said.

Something experts have been on both sides of the aisle about is whether or not we are headed into a recession. Anderson believes it's a real possibility, especially if consumer spending begins to slow down. 

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