American businesses are bracing for a wave of higher prices, with nearly 1 in 3 companies planning to charge more for their products and services in the next six months, according to a new study by LendingTree.
Only 4% of businesses expect to lower costs, while more than half say they anticipate higher costs from their own suppliers. This creates a domino effect where rising costs get passed down to consumers.
The research reveals major differences between states. Rhode Island businesses are the most pessimistic about prices, with 40% of companies in that state expecting to charge more in six months. On the other hand, West Virginia has the lowest share of businesses forecasting price increases — just 21% expect to raise prices.
"Even as inflation cools for consumers, many business owners are still feeling real pressure from rising costs. It's a tough spot — raising prices can help protect margins, but it also risks turning away price-sensitive customers. That balancing act isn't going away anytime soon," said LendingTree Chief Consumer Finance Analyst Matt Schulz.
The findings come as businesses prepare for potential new tariffs under the Trump administration. Those trade policies could further drive up costs for companies that rely on imported goods.
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