CEOs expect inflation to surge 3.7% over the next year

May 11, 2026 - 20:18

A new survey from the Cleveland Federal Reserve shows that chief executives across the United States are bracing for a notable jump in prices. According to the quarterly report released Monday, business leaders now expect inflation to rise by an average of 3.7% over the next 12 months. That figure is up from the previous quarter's forecast, signaling growing concern about persistent cost pressures.

The survey, which gathers responses from a wide range of industries, indicates that CEOs are not just worried about consumer prices. Many are also factoring in higher labor costs and supply chain disruptions that have yet to fully ease. The 3.7% projection sits well above the Federal Reserve's long-term target of 2%, suggesting that top executives see inflation as a stubborn problem rather than a temporary blip.

Some economists point to recent data on wages and raw material costs as drivers of this outlook. With the job market still tight, companies are paying more to attract and retain workers. Those expenses, in turn, get passed along to customers. The Cleveland Fed report does not predict when these pressures might fade, but the latest numbers make it clear that corporate leaders are not expecting relief anytime soon. For now, the mood among CEOs remains cautious, with many planning to adjust pricing strategies accordingly.