The Atlanta Fed’s measure of business inflation expectations increased again in March, up 0.2 ppts to 2.5%, the highest since November 2023.

• Firms’ unit cost growth over the last year increased 0.2 ppts to 2.4%.
• Despite an increase in cost growth, firms judged sales levels and profit margins to be slightly better in March than February.
• A special quarterly question on annual unit cost growth over the next 5-10 years saw long-term inflation expectations rise 0.2 ppts to 2.8% YoY in March 2025 (Q1 2025), the highest since June 2024 (Q1 2024).