Atlanta Fed's Business Inflation Expectations +2.8% in July

Business Inflation Expectations Decrease to 2.8 Percent - July 2021

• Inflation expectations: Firms' year-ahead inflation expectations decreased significantly to 2.8 percent, on average.
• Current economic environment: Sales levels "compared to normal" increased slightly. However, profit margins remain unchanged. Year-over-year unit cost growth is relatively unchanged at 2.9 percent, on average.
• Quarterly question: Firms' sales gap (percentage below "normal" unit sales levels) increased to 0.5 percent above normal as firms, on average, are now recording historically high sales levels.