Atlanta Fed data shows businesses are expecting inflation to run at 2.4% over the next year, up from 2.2% previously.
Small uptick, but worth watching. When firms start pricing in higher inflation, it often becomes self-fulfilling—they raise prices, negotiate higher wages, adjust contracts. The psychology shifts.
We're still hovering near the Fed's comfort zone, but the direction matters. If this trend continues, it complicates the "mission accomplished" narrative on inflation.
Markets have been pricing in rate cuts. Businesses are whispering something different.
Small uptick, but worth watching. When firms start pricing in higher inflation, it often becomes self-fulfilling—they raise prices, negotiate higher wages, adjust contracts. The psychology shifts.
We're still hovering near the Fed's comfort zone, but the direction matters. If this trend continues, it complicates the "mission accomplished" narrative on inflation.
Markets have been pricing in rate cuts. Businesses are whispering something different.
