NEW YORK, April 29 (Xinhua) -- Up to 68 percent of small businesses in the United States plan to raise average selling prices in the next three months so as to pass higher costs to consumers, according to a recent survey of small employers by the National Federation of Independent Business (NFIB).

       In particular, 40 percent of small employers intend to hike prices by 10 percent or more, showed the survey which was conducted from April 14 to 17 with 540 responses.

       As much as 62 percent of small employers reported that inflation is having a substantial impact on their business while 31 percent of them reported a moderate impact.

       Inflation overtook labor quality as the top business problems for U.S. small businesses in March, according to an earlier survey by the NFIB.

       The survey indicated that 86 percent of small businesses are increasing the price of their goods or services while 21 percent of them absorbed higher costs by reducing the quantity of materials or goods used to produce the final products.

       Additionally, 31 percent of small employers are taking on debt to finance higher costs, according to the survey.

       Nearly half of respondents said recent increase in gasoline and fuel prices has a substantial negative impact on their business, 35 percent a moderate negative impact and 16 percent a mild negative impact, according to the survey.

       Labor, rent and utilities also add up cost pressures for many small businesses but to a lesser degree than supplies and fuel, said the NFIB.

       "Inflation has reached levels not seen for the last 40 years and is dominating business decisions for small employers across the country," said Holly Wade, executive director of NFIB's Research Center.