Year-ahead inflation expectations were 2.1 percent in September

The year-ahead inflation expectations of businesses were 2.1 percent in September, according to the Federal Reserve Bank of Atlanta's most recent business inflation expectations survey. The survey was conducted September 8–12.

Respondents indicated that, on average, they expect unit costs to rise 2.1 percent over the next 12 months. Inflation uncertainty was up slightly at 2.5 percent. Firms also report that, compared to this time last year, their unit costs are up 1.8 percent. Respondents' sales levels compared to what they consider "normal" conditions were virtually unchanged, with approximately 59 percent of respondents indicating current sales levels are at or above normal. Profit margins showed no improvement, with roughly 48 percent of respondents indicating their profit margins are at or above normal, compared to 47 percent in August.

The Atlanta Fed's Business Inflation Expectations survey provides a monthly measure of year-ahead inflation expectations and inflation uncertainty from the perspective of firms. The survey also provides a monthly gauge of firms' current sales, profit margins, and unit cost changes.