Economy

Atlanta Fed Survey Sees Inflation at 1.9 Percent for Coming Year

Written by Sandy Williams

May 13, 2015

After remaining at 1.7 percent since January, Atlanta area firms surveyed in May are now expecting inflation to rise at a 1.9 percent rate in the coming year. Compared to this time last year unit costs are up 1.6 percent. The Business Inflation Survey conducted by the Federal Reserve Bank of Atlanta is monthly survey that measures year-ahead inflationary expectations, pricing pressures and general business conditions.

Current sales levels showed improvement in May with 71 percent indicating sales levels at or above normal. Profit margins were unchanged with 59 percent indicating margins at or above normal.

Labor costs are expected to put moderate or strong upward pressure on prices in the next 12 months according to 69 percent of those surveyed. Compensation costs are increasing for 67 percent of those surveyed with 81 percent of that group partially passing costs on to customers. Other factors influencing upward price changes are non-labor costs and sales levels

The survey data and charts may be accessed at www.frbatlanta.org/research/inflationproject/bie.aspx

Sandy Williams

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