đ¸ See if your business qualifies for a tax credit worth up to $26k per employee. đ Call Now: 855-979-9597
Simple Solutions: Inflation is Impacting Your Bottom Line
We are committed to sharing unbiased reviews. Some of the links on our site are from our partners who compensate us. Read our editorial guidelines and advertising disclosure.
From our experts to your inbox. Each week.
March 2, 2022
Weâre going to look back at inflation and talk about whatâs going on with the economy. Then, what are the books the Business.org team has been reading? Weâve got recommendations!

The Russian invasion of Ukraine last week was a devastating global event. We are following the situation and its developments closely. Right now, economic sanctions and reduced exports from both countries are impacting global inflation.
Need to Know
Inflation has been at the top of our minds for a whileâin fact, we covered it in our first newsletter. Since then, inflation hit its highest point in 40 years, and a recent survey found that 46% of Americans said inflation was the most important problem facing the US today.
So letâs talk about inflation.
How we got here
Inflation rose 0.6% in January of this year and over 7.5% from January 2021 to January 2022. In fact, since August 2021, inflation has been steadily increasing. But why is it still going up? Since weâre seeing evidence that the economy is beginning to recover and consumer spending increased by 3.8% in January 2022, shouldnât inflation be going down?
The issue is supply and demand. The COVID-19 pandemic decimated supply chains and increased material shortages. At first, that didnât impact inflation, which hit its lowest point during the pandemic in May 2020 (0.1%). But when consumers began to spend again, companies found it harder to fill orders.
So, basically, too much demand for a limited supply led to increased prices. And since there is still increased demand and spending, inflation continues to rise.
What comes next?
Now, weâre not at all saying that people should stop spending moneyâthatâs how businesses survive! And we would likely see another form of inflation if consumers sat on their money instead of spending it.
So what needs to happen for inflation to go down to a normal level? Supply needs to increase so supply can meet demand. But thatâs unlikely to happen any time soonâespecially with oil prices jumping following Russiaâs invasion of Ukraine. (Weâll be covering more on the economic fallout from the conflict in the coming weeks.)
The other option? The Federal Reserve could raise interest rates. This would cut down on borrowing and reduce large spending, but itâs not an immediate solution.
Right now, businesses need to keep track of inflation and ensure their inventory is ready for increased costs moving forward.
- We calculated the effects of inflation on small businesses.
- Looking for inventory management software? Here are our favorites. Spoiler, Ordoro and Zoho are tied at the top.
By signing up I agree to the Terms of Use and Privacy Policy.
What we're reading
Today is Read Across America Day, and to celebrate we asked our Business.org team what theyâre reading. Check out some of their favorites. Maybe youâll find the next thing for your business bookshelf.
The number one recommended book from our team was Burnout by Emily and Amelia Nagoski. âItâs a validating read for anyone whoâs ever felt âburnt outâ at work and doesnât understand why taking a few vacation days never feels like enough to regain an equilibrium,â said Kylie McQuarrie, our business accounting senior staff writer. (Programming note: Weâll be talking more about burnout in the coming weeks.)
We compiled more recommendations for you to check out on our website.
What have you been reading? Tell us on LinkedIn, Facebook, Twitter, or reply to this email!
What's new
- Mobile payroll can help you pay employees anytime, anywhere. We found the best five.
- With download speeds of up to 1,000 Mbps, these are your best business internet providers.
- Are you wondering when business taxes are due? Weâve got you covered.
- Online meetings arenât going away anytime soon, but you may be surprised at our top choice for the best videoconferencing software.
Thank you for reading. Weâll see you next week.
   - Alex and the Business.org team
To receive Simple Solutions, Business.org's weekly newsletter, in your inbox on Wednesday, sign up here.



