Inflation remains small businesses' chief worry, according to a new survey showing their optimism fell in February. The National Federation of Independent Businesses' optimism index fell to 89.4 in February. It's been below the 50-year average of 98 for 26 straight months. Twenty-three percent of small business owners said inflation was their top problem, up three points from January, when labor quality was the chief concern. Inflation remains elevated. Prices rose 0.4% from January to February, up from the previous month’s 0.3% pace, the Labor Department said last week. That's faster than what's needed to bring inflation down to the Fed’s 2% target. Core inflation is watched closely for a read on where inflation is likely headed. As they grapple with inflation, small business owners are spending less. Fifty-four percent of owners reported capital outlays in the last six months, down five percentage points from January.