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Inflation Expectations and Price Setting Among Fifth District Firms

Abstract: Evidence from a Federal Reserve Fifth District survey indicates that businesses become more reactive to inflation as it rises, but much of that reactivity reverses as inflation ebbs. Moreover, the survey indicates that inflation expectations matter to how most firms set their prices. How much inflation expectations matter and for whom they matter are essential questions for policymakers as they seek to maintain price stability.

Keywords: inflation expectations; price stability;

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File(s): File format is text/html https://www.richmondfed.org/publications/research/economic_brief/2024/eb_24-03
Description: Briefing


Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Richmond Fed Economic Brief

Publication Date: 2024-01

Volume: 24

Issue: 03