A monthly survey by the Federal Reserve Bank of Atlanta shows that businesses do not expect tariffs to cause higher inflation.
The expected inflation over the next year was relatively unchanged at 2.3%. This was a slight increase from a month ago, and was in line with expectations last February.
Businesses in the Federal District of Atlanta said they expect to raise prices at a lower price than last year. The company reported a 4.0% increase in median prices over the past 12 months and said it expects prices to rise by 3.0%.
The results suggest that businesses do not expect the tariffs proposed by President Trump to increase inflation. On the contrary, the expected 2.3% inflation is significantly lower than the inflation experienced earlier this year or last year. In January, the consumer price index rose at a rate of 5.7% per year. Prices rose 3% last year.
The Atlanta Federal Government's Business Inflation Expectations (BIE) survey will bring about 640 executives and managers of businesses in the Fed's sixth district, including Alabama, Florida, Georgia, East Tennessee, Southern Mississippi and Southern Louisiana. .
