Record high gas prices and inflation continue to hurt Colorado businesses

With gas prices continuing to climb and inflation soaring across the nation, Colorado businesses are being greatly impacted with no end in sight. The average gas price is currently $4.98 per gallon in Colorado which marks a record high cost for the state and consumer inflation crossed 9% in metro Denver as of March 2022.

According to the Council for Community and Economic Research, the average cost of living increased 9.76% between the first quarter of 2019 and the first quarter of 2022. With housing, fuel and other necessities experiencing substantial increases in pricing, many businesses are facing a variety of challenges – from supply chain issues to increased transportation costs to ensuring employees have access to housing in many high-cost areas of Colorado.

The price of goods has outpaced earnings growth for many employees, which is causing hardship for individuals and employers alike. Among struggling businesses, Colorado small businesses are often hit the hardest as about 51% of small business owners are concerned that they will be forced to close within the next six months due to inflation. And nearly half of small business owners doubt that their business could survive unplanned expenses of as little as $5,000.

What impacts Colorado businesses also impacts employees and consumers. While employers can try to absorb as much as they can when it comes to new costs, inflation and fuel prices will inevitably be felt in the form of higher prices for goods and services. These costs will also impact capital investments and what businesses are able to pay employees.

Factors such as supply chain issues, labor challenges, and soaring inflation are creating a superstorm that Colorado businesses are trying to weather. Relief options for businesses such as the Small Business Administration’s COVID-19 Economic Injury Disaster Loan program are dwindling as their funding is exhausted and many business owners are turning towards loans and forms of credit to keep their business afloat.

So what can Colorado businesses do to combat rising inflation? Experts advise that businesses refinance any existing debt now as rates continue to rise. Also, consider consulting with your employees for keen insight into ways your business might be able to cut costs. Learn more tips for battling inflation here and find the lowest gas prices near you here.