MNI BRIEF: Firms See Inflation Moderating In 2024 -Fed Survey

Firms in the New York Fed district reported markedly slower increases in costs, wages and prices over the past year and expect inflation to continue to moderate, according to survey results the regional Fed bank published Wednesday.

Average cost increases fell to 5% to 6% over the past year from 11% to 13 percent in 2022. Wage increases slowed by about 1 pp to 4.3% and 5.3% for services and manufacturing firms, respectively. Average selling price increases fell to 5.3% from 7.3% for services firms and to 3.2% from 9.5% for manufacturing firms, the survey found. "Firms expect all three measures to moderate further over the next twelve months" to under 4%, and they expect the overall U.S. inflation rate to be around 3% next year, the New York Fed said. (See: MNI INTERVIEW: Fed Could Cut As Early As June-Quarles)