Inflation Expectations Among Businesses Not Accelerating

Despite tariffs and high input costs, inflation expectations among businesses is not accelerating, at 2.1 percent in August and unchanged from July. Yet this reading, like most inflation data, has in fact been trending incrementally higher, moving from the 1.7 percent rate to just over 2 percent over the last year. Watch for Friday's consumer sentiment report where inflation expectations at the consumer level edged higher in June before slipping back in July.