Prices ‘highly elevated’ in 12 US districts from mid-Jun to Aug: Fed

“Substantial price increases were reported across all Districts, particularly for food, rent, utilities and hospitality services,” the report said.

Most US businesses foresee persisting high prices for the remainder of the year as the economic growth outlook deteriorated over the summer, according to the latest Beige Book by the Federal Reserve. Though price levels were ‘highly elevated’ in 12 districts covered from mid-June till August, nine reported ‘some degree of moderation’ in the rate of increase.

“While manufacturing and construction input costs remained elevated, lower fuel prices and cooling overall demand alleviated cost pressures, especially freight shipping rates,” it said.

Overall economic activity remained unchanged over the summer, with five districts reporting slight to modest growth in activity, and another five reporting slight to modest softening, the Beige Book reported.

“Most districts reported steady consumer spending as households continued to trade down and to shift spending away from discretionary goods and toward food and other essential items,” the report said.

Manufacturing activity rose in several districts, although some reported declining output as ‘supply chain disruptions and labour shortages continued to hamper production’, the report added.

Fibre2Fashion News Desk (DS)