Topic: Painting Industry

Tim, a small business owner in Michigan, reports a 56% increase in material costs for his painting company over the last two years. He notes that while his gross sales have increased, his net profit has dwindled to nearly zero due to rising labor, gas, and product costs. The host explains that the "Producer Price Index" is rising faster than the "Consumer Price Index," meaning businesses are currently absorbing the hit before passing it on to customers.