A recent study indicated that nearly one-third of US businesses are likely to increase prices before the end of this year, as they navigate through rising costs and inflation.
More than 30% of companies surveyed by LendingTree mentioned they anticipate higher prices in six months. In contrast, about 5% expect a price decrease, while 65% predict stability in their pricing.
This data emerges amid ongoing uncertainty surrounding President Trump’s deferred tariff implementation this year and the persistent pressure from inflation.
“Taxes may significantly influence these worries, but the prevailing uncertainty in the US economy is also a factor,” Matt Schultz, a consumer finance analyst at LendingTree, noted in a release. “With so many variables at play, it’s challenging to foresee what the future weeks or months, let alone six months ahead, will entail.” He added that the report suggests many companies expect to observe a further increase.
The Wall Street Journal reported that modest price hikes are anticipated, particularly for Home Depot, a home improvement retailer, which is striving to utilize domestic products and lessen tariff impacts by diversifying its supply chain.
Economists and political strategists have expressed concerns regarding escalating costs throughout the year, especially after pledging to lower prices contingent upon Trump’s election.
Businesses in states like Rhode Island, New Hampshire, Montana, Washington, Oregon, and Vermont predicted price hikes, with over 36% in each of those states indicating plans for adjustments.
Firms in West Virginia, Mississippi, Arkansas, Alabama, Washington, DC, New Mexico, Indiana, South Dakota, Louisiana, and Nebraska also reported expected price increases, although there is evidence of resistance among Nebraska businesses.
Over half of the companies surveyed nationally shared that they forecast an increase in their costs if prices rise for goods and services in the next six months, and that avoiding a price increase could impact their revenues.
“The pressures on prices might necessitate other alternatives, like reducing staff, to maintain competitiveness,” Schultz added.
LendingTree conducted this survey from June 2nd to June 15th, relying on data from the U.S. Census Bureau’s business trends and outlook survey for their findings.
