Small business owners across the United States are aggressively adjusting their pricing strategies in response to persistent fiscal pressures. Data released in November 2025 indicates a record-breaking shift in how Main Street is coping with the economic climate, with a historic number of firms reporting price increases to combat inflation. 

According to the latest data from the National Federation of Independent Business (NFIB), a net 34% of small business owners reported raising their average selling prices in November 2025. This figure represents a sharp 13-point increase from October and stands as the largest monthly jump in the survey’s history. This aggressive pricing strategy suggests that despite broader economic adjustments, inflationary pressure remains a critical force squeezing the small business sector. 

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Inflation Remains a Primary Anxiety 

While the overall Small Business Optimism Index rose slightly to 99.0, driven by expectations of higher sales, the underlying data reveals significant stress regarding costs. Inflation currently ranks as the second most important problem for small business owners, with 15% citing it as their top operational concern. 

This fiscal pressure trails only labour quality, which remains the single most significant issue for 21% of owners. The twin pressures of finding qualified staff and managing rising input costs are eroding profitability for many. Among owners reporting lower profits in November, 16% cited the rising cost of materials, while 12% pointed to labour costs. 

Future Outlook: Persisting Price Hikes 

The trend of rising prices appears set to continue into early 2026. Looking forward to the next three months, a net 30% of owners plan to implement further price increases. This indicates that businesses do not view the current cost spikes as transitory and are positioning themselves to pass continued costs onto consumers. 

However, the outlook is not entirely bleak. Despite the necessity of price hikes, business owners are showing resilience regarding demand. The net percentage of owners expecting higher real sales volumes rose by 9 points to a net 15%, which was the primary driver for the overall increase in the Optimism Index. 

Impact on Valuation and M&A 

These inflationary dynamics are also reshaping the market for buying and selling businesses. In the manufacturing sector, for example, rising costs and margin management are top concerns for 2025 valuations. Buyers are increasingly prioritising companies that have demonstrated adaptable pricing strategies and optimised cost structures to mitigate volatility. Conversely, the high-interest-rate environment—maintained to combat this inflation, continues to limit affordable financing for acquisitions, dampening deal activity and putting downward pressure on business valuations. 

Navigating this economic environment is akin to sailing a ship through a storm while trying to repair the sails; a captain must constantly adjust the course (pricing) to handle the gale-force winds (inflation), all while ensuring the crew (labour) is capable of keeping the vessel moving forward without capsizing under the financial strain.