In our economy, Main Street plays a significant role. The Small Business Administration (SBA) reveals that almost half of our GDP is transacted on Main Street. This means that the pricing behavior of the millions of small businesses, both employer and non-employer firms, has a direct impact on various economic factors, such as the rate of inflation and the cost of the basket of goods used to measure the Consumer Price Index (CPI).
To determine the CPI, the Bureau of Labor Statistics (BLS) sends out thousands of shoppers every month to gather data on the prices of goods and services in the CPI basket. And it's not just large retailers and corporations they visit - they also shop at small businesses in small towns. This is crucial because millions of consumers pay prices that are set by these small businesses.
