Inflation projections for the coming year, measured by expected unit costs, held steady at 1.7%, according to the Federal Reserve Bank of Atlanta's monthly Business Inflation Expectations survey released Friday.
About two-thirds of those surveyed see labor costs putting moderate or strong upward pressure on prices.
Firms said sales and profit margins were unchanged in February from January.
"Respondents' sales levels, compared to what they consider normal conditions, remained steady, with approximately 64% of respondents indicating current sales levels are at or above normal," the survey said. "Profit margins also remained steady, with roughly 54 percent of respondents indicating their profit margins are at or above normal."
Inflation uncertainty was unchanged at 2.3%. Companies reported unit costs are 1.5% higher than a year ago, down from 1.6% in January.
Firms said they expect average total compensation to increase by 3% over the next 12 months, on average.
The survey was conducted Feb. 9-13, with 208 firms responding.
