NEW YORK – Inflation expectations ticked up to 1.9% in the comng year from a 1.8% prediction last month, according to the Federal Reserve Bank of Atlanta’s monthly business inflation survey of firms in the Sixth Federal Reserve District.
That number, is measured by the rise firms anticipate in their year-ahead unit costs.
"Firms also reported that their unit costs had risen 1.8% compared to this time last year, which is 0.3 percentage point higher than their assessment in January," according to the survey.
Respondents reported sales were still below normal, with margins depressed. Also, respondents see labor costs putting “only moderate upward pressure on prices” this year.
Non-labor costs, however, respondents said, will have a moderate or strong upward influence on prices.
Sales, productivity and margin adjustments should have a small, positive influence on prices this year, according to survey respondents.