November 14, 2022
Main Street Monday – Businesses in All States are Continuing to See Rising Inflation
“Local businesses and communities now face a new set of challenges in addition to the lingering impacts of the pandemic, from continuing supply chain issues and delays, workforce shortages and reductions, and the highest inflation rate in 40 years,” reads a Yelp Economic Average report about the third quarter of 2022. “Regionally, the Southwest is experiencing the highest increases in inflation mentions quarter over quarter, while the Midwest is experiencing the highest increase year over year.”
Here are the facts:
• The annual inflation rate fell in September to 8.2% following a 40-year all-time high of 9.1% in June.
• Reviews mentioning inflationary experiences increased 22% in the third quarter of 2022 compared to last year.
• Every U.S. state has seen an increase in mentions of inflation with Alaska, Kentucky, and Iowa having the largest gains.
• The Southwest had the highest quarter-over-quarter increase in mentions of inflation, a 7% increase from the second quarter of 2022. Active life (up 16%), food (up 13%), and arts and entertainment (up 11%) are the most significant contributors to mentions of inflation.
• The Midwest had the largest jump in inflation mentions (26%) compared to the third quarter of 2021. Wholesale stores had 14 times more inflation mentions over the past year.
• Compared to a year ago, grocery stores and food businesses are four of the five food businesses with the biggest increase in inflation experiences, an increase of 31%.
• Up 21% from the third quarter of 2021, beauty services and spas are having notable increases in inflationary experiences.
• Mentions of inflation increased 19% for arts and entertainment businesses and 17% for nightlife and bars from the third quarter of 2021 to the third quarter of 2022.
• Despite travel demand rising, consumers have noted inflation at hotel and travel businesses 10% more frequently than last year.
“Although many consumers are continuing to feel the long-term effects of inflation, consumer spending remains strong, and the pandemic has proven that local businesses and communities are resilient.”
Yelp Economic Average Report