MNI BRIEF:Inflation Widespread, Some Moderation-Fed Beige Book

U.S. inflation pressures are still widespread despite some moderation while economic activity is softening in many parts of the country, the Fed's latest Beige Book report said Wednesday.

"Overall economic activity increased slightly in early 2023. Six Districts reported little or no change in economic activity since the last report, while six indicated economic activity expanded at a modest pace," the Fed said. "Inflationary pressures remained widespread, though price increases moderated in many Districts."

The Fed also said labor markets remain solid. "Employment continued to increase at a modest to moderate pace in most Districts despite hiring freezes by some firms and scattered reports of layoffs," the report said. "Some Districts noted that firms were finding it more difficult to pass on cost increases to their consumers." (See MNI INTERVIEW: Expectations A 'Source Of Concern'-Fed's Knotek)