Businesses expect inflation to run at a 1.7% annual pace for the coming year, the same pace as predicted in the past two months, according to the Federal Reserve Bank of Atlanta's business inflation expectations survey.
The survey was conducted March 9-13, with 203 firms responding.
"Respondents indicated that, on average, they expect unit costs to rise 1.7% over the next 12 months," according to the survey. "Inflation uncertainty was virtually unchanged at 2.4%. Firms also report that, compared to this time last year, their unit costs are up 1.5%. Respondents' sales levels, compared to what they consider normal conditions, remained steady, with approximately 63% of respondents indicating current sales levels are at or above normal. Profit margins also remained steady, with roughly 54% of respondents indicating their profit margins are at or above normal."
