Utah small companies wrestle with rising prices introduced on by inflation

SALT LAKE CITY — Because the Federal Reserve prepares for one more rate of interest enhance to chill inflation, small companies are coping with rising prices day-after-day.

“Virtually in a single day we noticed a 30% enhance in our prices, stated Molly Kohrman, proprietor of Brownies!, Brownies!, Brownies! in Salt Lake Metropolis.

The Shopper Worth Index information revealed by the Bureau of Labor confirmed the worth of flour rose 23% prior to now 12 months, the worth of butter rose 25% and the worth of eggs elevated 39%.

These will increase characterize a year-over-year change. Kohrman says it’s even worse in comparison with earlier than the COVID-19 pandemic started.

“Earlier than COVID, I might purchase a case of eggs for $20,” she stated. “Now after I go to the shop, I’m about $45-$60 or extra per case.”

Eggs, flour, butter and sugar are all important components within the baking course of.

Regardless of the rise in prices, Kohrman has prevented passing these prices to her clients and has not raised her costs.

“I’m going to do every thing I can to keep away from that,” she stated. “It’s at all times been actually necessary to me to make our product accessible to our neighborhood.”

She has discovered extra cheap packaging to assist offset a number of the rising prices, however fears that will not be sufficient.

She hopes lawmakers in Washington, D.C. reauthorize the Small Enterprise Administration and supply extra funding and initiatives to assist small enterprise house owners compete with massive companies and cope with a brand new world of challenges within the post-covid world.

Kohrman fears if one thing isn’t accomplished to assist mother and pop outlets, communities will lose some invaluable property.

“If you’d like any type of native taste, if you would like any persona in your neighborhood – it comes from these small companies,” she stated. “With out these native companies you will lose a lot of the neighborhood.”

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