The Federal Reserve Bank of Cleveland published results from its Survey of Firms’ Inflation Expectations showing that inflation expectations among US business leaders increased in 2025:Q2. CEOs and other top executives reported in April that they expect inflation as measured by the Consumer Price Index (CPI) to be 3.9% over the next 12 months, up from 3.2% in 2025:Q1. The quarterly survey draws from a large representative panel of firms in the manufacturing and services sectors. It captures respondents’ beliefs about expected CPI inflation over the next 12 months each quarter, and once per year also collects views on average CPI inflation over the next five years, CPI inflation over the prior 12 months, perceptions of the Federal Reserve’s inflation target, and the probability that CPI inflation over the next 12 months will exceed 5%.