Fed says price gains remain modest, loan demand sees decline

By Ovunc Kutlu

ISTANBUL (AA) - Price gains in the US remained modest since September, while bank loan demand saw some declines, according to a report by the Federal Reserve.

"Prices continued to increase at a modest pace overall," said the Fed's Beige Book which gathers information on current economic conditions from the central bank's 12 districts across the nation.

"Districts noted that input cost increases have slowed or stabilized for manufacturers but continue to rise for services sector firms. Increases in fuel costs, wages, and insurance contributed to growth in prices across Districts," it added.

The bank said tightness in the labor market continued to ease across the nation last month, while most districts reported slight to moderate increases in overall employment and firms were hiring less urgently.

"Banking contacts reported slight to modest declines in loan demand," said the report.

In New York, however, home prices have continued to edge up despite rising mortgage rates, as demand still remains high and with "exceptionally low inventory."