5.7% Inflation... what, me worry?

I went to software conference today where the guest speakers were managers of small businesses. Their overwhelming statement, over and over and over again was that cost was everything and that they would potentially forgoe safety, protection and security depending on costs of software solutions.

So then I flip to the front page of the USA Today where I read an article stating the CPI is up 5.7%, wages are flat, and the analysts are saying "things aren't that bad".

It really struck me. I just got finished listening to these guys say that our products are too expensive and then I am reading that I don't need to worry. I am no expert but it seems that small business owners like these are the true back on which the American economy is riding (or sliding as it were). If we are upping costs and not giving people comperable raises, we are setting up for economic collapse. Will it be in early July or next year? God I wish I knew - but I don't.