Inflation Expectations Surge to 2.2% - What's Next for Businesses?

Businesses are bracing for higher inflation as expectations for the next year have climbed to 2.2% in January, up from 2.0% in December, according to the Federal Reserve Bank of Atlanta. This uptick in inflation expectations comes amidst a stable sales environment, with sales levels remaining consistent with what is considered normal. However, not all economic indicators are holding steady. Profit margins have taken a hit, decreasing when compared to what businesses typically experience. This shift in profit margins could signal challenges ahead for companies as they navigate the rising cost environment. Meanwhile, the year-over-year comparison shows a nuanced economic landscape where businesses are adjusting to new realities.

Source: seekingalpha.com