Is inflation beginning to lose its grip on businesses even as the recovery in sales and profit margins gathers momentum? The latest Business Inflation Expectations Survey (BIES) conducted monthly by the Misra Centre for Financial Markets and Economy at IIMA presents a cautiously encouraging picture: while firms have marginally raised their one-year inflation expectations, improving sales levels and a gradual recovery in profit-margin perceptions point to strengthening business conditions.

The July 2026 survey puts one-year-ahead business inflation expectations at 4.94%, a marginal 10-basis-point increase from 4.84% in June. Yet the more intriguing story lies beyond the headline inflation number -with sales expectations improving sharply and fewer firms reporting profit margins below normal levels.