The Atlanta Fed’s measure of business inflation expectations dropped -0.3 ppts to 2.5% in May, reversing the rise seen in April.

• Sales levels rebounded slightly while profit margins "compared to normal" declined to the lowest level since December 2023.
• Year-over-year unit cost growth increased to 2.3% in May, on average, up from 2.2% in April.

• The median firm increased prices by 3.8% in the last 12 months and expect to increase prices by 4.0% in the next 12 months (the largest expected increase since December 2022.