Fed Beige Book: Inflation Continues to Slow, Prices Moderate in Most Regions

The Fed Beige Book shows that inflation continues to moderate, with sales prices reported to have increased at a slight or moderate pace in most areas. However, prices for some food items, such as eggs and dairy products, rose more. Home prices rose modestly in many districts, while rents were flat or declined slightly. Rising consumer price sensitivity was noted in many districts. Input prices rose moderately overall. Respondents from multiple industries noted more severe pressures from rising insurance and health care costs. Several regions reported that input prices generally rose faster than sales prices, compressing business profit margins.