Analysts say inflation is becoming increasingly inescapable as strong consumer demand and a hot labor market continue to drive the surge.

MICHIGAN CITY, Ind. (NewsNation) — Analysts say inflation is becoming increasingly inescapable as strong consumer demand and a hot labor market continue to drive the surge.

Inflation has also taken hold on Main Street, where a growing number of small businesses are struggling.

For many businesses in Michigan City, Indiana, profits are down and many business owners are hoping for a tourist rush this summer to make up for the setbacks brought on by rising prices.

Hoity Toity home decor owner Jessie Cundiff said his business has taken a 30% hit in sales due to inflation.

“Everybody is trying to sell extra things and generate extra money,” he said. “There is just no shortage of people trying to get rid of things; it’s the buyers we’re lacking.”

With supply chain issues and shipping delays, Cundiff said he’s been forced to pass along a 15% to 20% price increase to the consumer.

And it’s a similar scenario at stores across the country.

According to the U.S. Department of Labor, Arizona has been hit the hardest by inflation, with an increase of 11%. Also in the top 10 are Washington, California, Colorado, Texas, Missouri, Michigan, Georgia, Florida and Maryland.

Products across the board are also prompting sticker shock.

In a NewsNation inflation index, a gallon of 2% reduced-fat milk in those states sits at $5.55 — up 16% from a year ago.

Back in Michigan City, Cundiff said he’s in a position to weather the financial storm. He’s comfortable for now, but if the numbers don’t pick up soon, challenges are likely on the horizon.

“I just hope they continue to buy things and we continue to be here for them,” he said. “Without the customer, we won’t be here.”