The Atlanta Fed Business Inflation Expectations measure fell -0.1 ppt to 2.3% in July, the lowest since February 2025.

• Sales levels and profit margins "compared to normal" declined slightly.
• Year-over-year unit cost growth remained steady at 2.3% for the third straight month.
• Large firms reported a -2.4 ppt drop in sales levels QoQ, while sales for small and medium firms were unchanged.
• Firms cited trade policy changes as a factor in 2025 price decisions.

• In our sample around 60 percent of firms have increased prices or plan to do so within the current year. This result holds true across firms of different sizes.
• We see that firms who raised or plan to raise prices feel that their competitors are doing the same thing. The inverse is also true: firms that did not raise and do not plan to raise prices do not expect others in their industry to do so, either.