Softening In Price Components Compared To May 31 Release - Beige Book

Relatively Softer Price Expectations In Coming Months

• Today: “Prices increased at a modest pace overall, and several Districts noted some slowing in the pace of increase.” “Price expectations were generally stable or lower over the next several months.”
• May 31: “Prices rose moderately over the reporting period, though the rate of increase slowed in many Districts. Contacts in most Districts expected a similar pace of price increases in the coming months.”

• Today: “Consumer prices generally increased, though reports differed in the extent to which firms were able to pass along input cost increases. Contacts in some Districts noted reluctance to raise prices because consumers had grown more sensitive to prices, while others reported that solid demand allowed firms to maintain margins”.
• May31: “Consumer prices continued to move up due to solid demand and rising costs, though several Districts noted greater price sensitivity by consumers than in the prior report.”

More Mixed Input Cost Pressures

• Today: “Input cost pressures remained elevated for services firms but eased notably in the manufacturing sector. Freight rates continued to decrease, along with the prices for many construction inputs, though concrete prices increased.”
• May 31: “Overall, nonlabor input costs rose, but many contacts said cost pressures had eased and noted price declines for some inputs, such as shipping and certain raw materials. Home prices and rents rose slightly on balance in most Districts, after little growth in the prior period.”