Business Watch

Business Inflation Expectations Edge Higher

Business inflation expectations ticked slightly higher in this month’s print from the Federal Reserve Bank of Atlanta, while just over half of respondents said they expect tariffs to lead to further price increases.

The expectations for price growth came in at 2% for August from 1.9% in July, the Atlanta Fed said on Wednesday. That’s the third time in four months the print has come in at 2%, the bank’s data showed.

“Sales levels and profit margins compared to ‘normal times’ remained roughly the same,” said the Fed branch.

Expectations for inflation have remained muted in the US lately, raising concerns at the Federal Reserve as price growth has hovered below the central bank’s 2% target. Last month, the Fed cut the target range on its Fed funds rate for the first time since the economic crisis of more than a decade ago.

Worries about the economy have also grown as the US and China battle in a protracted trade war, with tit-for-tat levies being planned or implemented on each others’ imports.

Business inflation expectations ticked slightly higher in this month’s print from the Federal Reserve Bank of Atlanta, while just over half of respondents said they expect tariffs to lead to further price increases.

The expectations for price growth came in at 2% for August from 1.9% in July, the Atlanta Fed said on Wednesday. That’s the third time in four months the print has come in at 2%, the bank’s data showed.

“Sales levels and profit margins compared to ‘normal times’ remained roughly the same,” said the Fed branch.

Expectations for inflation have remained muted in the US lately, raising concerns at the Federal Reserve as price growth has hovered below the central bank’s 2% target. Last month, the Fed cut the target range on its Fed funds rate for the first time since the economic crisis of more than a decade ago.

Worries about the economy have also grown as the US and China battle in a protracted trade war, with tit-for-tat levies being planned or implemented on each others’ imports.

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