Market reports show the U.S. economy is posting strong employment numbers and a declining inflation rate, but some small business owners tell ABC News they are still feeling the pressure.
When Mia Sakai opened her Chicago winery in December 2020, she had to deal with the pandemic, supply chain issues and then rising product costs — costs she passed along to her customers.
“It’s not an easy thing to do and it’s not something we like to do, but we also want to be able to keep our business here and continue to serve the neighborhood,” Sakai told ABC News.
According to experts, rising prices at grocery stores are one of the reasons Americans’ economy is depressed.
Between 2019 and 2023, food inflation rose 25%, faster than other categories such as housing, clothing and healthcare, according to government data.
Treasury Secretary Janet Yellen told ABC News that she notices label shock when she buys her products, but said she doesn’t expect that to continue.
“Food prices have largely stabilized. They are not increasing at a rapid rate,” he said.
Yellen recently gave a speech in Chicago about the state of the economy and let Americans know that the economy is not as bad as they think.
The secretary stressed that wages are finally reaching the level of rising prices.
The typical American household now spends $1,019 more each month on the same goods and services compared to three years ago due to inflation, according to economic data from Moody’s Analytics, but wages rose an average of $1,072 per month during that time. , offsetting the higher prices.
Consumer confidence has been slowly recovering from a low in June 2022, according to recent surveys, and Yellen suggested the data shows a shift in public sentiment about the economy.
However, Alexandria Jones, owner of a Chicago clothing and vintage store, said she’s still struggling.
Her landlord increased her monthly rent from $1,400 to $1,750 and she has not been able to hire additional staff.
“Last year, I wasn’t here 11 days out of 365 days because I had to be here,” he said.
Paul Ruffino, owner of Rattleback Records, told ABC News that he’s lucky to say business has remained stable despite the price increase.
He said the problem with the economy now is not so much the message but the messenger. Ruffino said the Biden Administration and other leaders need to get the word out more.
“Unemployment is low, inflation has slowed, so I think things seem to be going in the right direction and hopefully will continue to do so,” he said.