Inflation rates are finally starting to flatten out, but there are still more challenges facing our economy. Here are some updates on the current inflation status and how it is affecting consumers and merchants.
In June 2022, inflation rose to an astounding 9.1%, which crushed business merchants and encouraged timid consumer behavior. January 2023, the annual inflation reading came in at 6.4% year over year, and now it has settled at 6%. Energy costs are coming down, and food price increases are also slowing. There is still a lot of work to be done to decrease inflation rates, but we are headed in the right direction.
Although inflation rates have seen improvement, it has been masked by the second biggest bank failure in U.S. history, Silicon Valley Bank. Massive bank failures have historically presaged a recession, which many investors are anticipating. It is important to be ready for any shift in the economy and to equip your business with proper solutions to limit the effects of inflation and/or recession.
Inflation Resource Center
At Celero, we want our clients to be as prepared as possible for anything the economy throws at us. For this reason, we have created an Inflation Resource Center, which provides merchants with creative ways to reduce expenses, improve customer loyalty, and create sales opportunities for their businesses during times of high inflation.
One of the resources we are offering is a free on-demand webinar hosted by American Express. The webinar covers current trends in the U.S. economy that impact the global business environment and other insights from a leading expert on the global economy, Cailin Birch. Visit this link for free access to this informational webinar
High inflation rates result in higher processing fees for merchants to bear. To combat these fees, we have put together information and a video on how to implement cash discounting and surcharging into your business. Cash discounting can motivate customers to make cash purchases that will avoid the processing fees of credit and debit card transactions. Surcharging will add a fee to the consumer's total to cover the cost of processing fees.
Our Inflation Resource Center offers many other cost-saving solutions that are great for any merchant. Fast card processing, gift card & loyalty programs, affordable full-service payroll, and more services are available now.
We are a true ally to merchants and support America’s small to mid-sized businesses. Our goal is to support merchants in every way possible, more than just card processing. We are always looking for new resources and solutions to help our clients thrive, even during rough times. For more information about how Celero can assist your business with high inflation, contact us today.