Cleveland Fed survey shows businesses raise inflation expectations by 0.6 percentage points from the prior quarter.
Businesses surveyed by the Cleveland Fed now expect inflation to reach 3.7% over the next year, up from 3.1% in the first quarter. The increase marks the highest reading since the survey began tracking expectations in 2021.
The Survey of Firms’ Inflation Expectations polls a large, representative panel of companies quarterly. The prior quarter’s expectation stood at 3.1%, while the year-ago reading was 3.4%. The rise suggests growing concern among firms about persistent price pressures.
Markets may view the uptick as a signal of potential inflation stickiness, though no immediate market reaction was reported in the release.