Cleveland Fed: Firms Raising Prices, Cutting Staff in Response to Cost Pressures

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The Federal Reserve Bank of Cleveland has released the results of its latest Survey of Regional Conditions and Expectations, which was administered September 18-25. Cost pressures continue to impact companies in the Cleveland Fed’s district, with these firms reporting an average increase in nonlabor costs of 6.8% over the last 12 months, and an increase in wages and salaries of 4.8%. In response to these cost pressures, 65% of the firms reported increasing prices while 21% reduced payrolls. Finally, the survey respondents expected nonlabor prices to increase an additional 5.3% over the next 12 months, and wages and wages and salaries to increase 4.6%.


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