The Atlanta Fed Business Inflation Expectations Survey found firms’ year-ahead inflation and unit cost expectations held at 2.2% in December, remaining at the lowest level since January.

• Year-ahead unit cost expectations remained unchanged at 2.2%, staying well below the April 2022 peak of 3.8% but still slightly above the 2.0% prepandemic average.

• Firms’ year-ahead unit cost uncertainty declined further after peaking in July, indicating reduced dispersion around cost expectations.

• Long-run (five to ten year-ahead) unit cost expectations edged down from 2.7% in September 2025, pointing to a softer longer-term cost outlook.

• Year-over-year unit cost growth rose to 2.4%, suggesting a modest pickup in realized cost pressures relative to prior readings.

• Firms reported improvements in sales levels and profit margins “compared to normal,” indicating slightly better current business conditions.

• Special-question results showed firms were equally confident in expectations for average prices and core product prices, though responses differed when costs rose sharply due to labor-driven increases.