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MNI BRIEF: Atl Fed: Firms' Inflation Expectations Spike to 3%

(MNI) WASHINGTON
WASHINGTON (MNI)

Firms in the Atlanta Fed district now expect inflation to be a record 3.0% in the coming year, increasing "significantly" from a month earlier, according to the bank's latest survey. Business' year-ahead inflation expectations have shot up since the pandemic low of 1.4% -- and they were at 2.8% in May.

Firms' long-term inflation expectations also rose significantly to 3.0%, the Fed bank said. The data series started in October 2011.

Simmering price pressures could force Federal Reserve officials to speed up their QE exit and interest-rate liftoff timeline as they reassess how hot the economy can run, MNI has reported. However, the FOMC is expected to signal patience at Wednesday's meeting and press conference.

MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com
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