Inflation is expected to be 2.0% in the next 12 months, according to the Federal Reserve Bank of Atlanta's most recent business inflation expectations survey, slightly higher than the 1.9% rate forecast in the past two surveys.
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"Inflation uncertainty was virtually unchanged at 2.4%," according to the survey. Respondents estimated unit costs rose 1.8% from a year ago. About half of the respondents said current sales levels are at or above normal, similar to the prior survey's results.
Profit margins improved, and most respondents see labor costs adding "moderate or strong upward pressure on their prices over the next 12 months."
