Inflation At Business Level Remains Subdued

Despite tariffs and evaporating labor slack, inflation expectations at the business level remain subdued, up only 1 tenth in June to 2.1 percent. Yet this index, like inflation expectations at the consumer level, is trending marginally higher with this particular reading coming off a 7-year high at 2.3 percent in March. Watch for the FOMC later today and whether Fed policy makers upgrade their assessment of inflation expectations which in prior statements was described as unchanged.