Inflation expectations ticked up to 1.9% in the coming 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.

The number is determined by the rise firms anticipate in their unit costs.

“Firms also reported that their unit costs had risen 1.8% compared to this time last year, which is 0.3 percentage points higher than their assessment in January,” according to the survey.

Respondents reported sales were still below normal, with margins depressed.

In addition, respondents see labor costs putting “only moderate upward pressure on prices” this year.

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