Prices were up as economic activity increased at a “slight to moderate pace,” but higher prices for fuel dampened sales in other categories, the Federal Reserve said in a report issued Wednesday.
The Fed’s latest Beige Book also reported that both commercial and consumer loan volumes edged up in the most recent reporting period. However, quality of those loans diverged between the two categories, with commercial loan quality being stable but consumer loan quality declining.
The Beige Book is a semi-monthly report (published eight times a year) that provides anecdotal information on current economic conditions from each of the 12 Federal Reserve Bank districts through reports from bank and branch directors and interviews with key business contacts, economists, market experts, and other sources.
The latest edition covers the period of late May through June.
The book also notes that prices increased moderately overall, with nine Federal Reserves districts reporting moderate growth, two robust growth, and one slight growth. In the previous reporting period, price growth was the same or slower in all districts, the report stated.
“Non-labor input costs increased for a variety of industries—including services, construction, and manufacturing—and reflected in part higher costs for energy, transportation, and raw materials,” the report stated. “Some contacts tied these cost increases to the conflict in the Middle East; others mentioned tariffs.”
Consumers are feeling the price increases, the report indicated: some districts said they saw greater price sensitivity among their customers.
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