The Atlanta Fed’s August 2026 Business Inflation Expectations Survey found that businesses expect their prices to rise an average of 3.7% over the next 12 months, down from 4.1% in May. Meanwhile, firms reported that prices had risen 4.5% over the previous year.
Average unit-cost growth increased to 2.5%, while businesses reported weaker sales compared with normal levels but somewhat improved profit margins. The survey also examined how companies are responding to tariffs and the recent spike in energy costs, highlighting continued uncertainty around inflation pressures.
Overall, the survey suggests inflation expectations are easing but remain elevated, with businesses still facing significant cost pressures.
