Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/284022 
Year of Publication: 
2023
Series/Report no.: 
Staff Report No. 1062
Publisher: 
Federal Reserve Bank of New York, New York, NY
Abstract: 
We examine businesses' price-setting practices via open-ended interviews and in a quantitative survey module with business contacts from the Federal Reserve Banks of Atlanta, Cleveland, and New York in December 2022 and January 2023. Businesses indicated that their prices were strongly influenced by demand, a desire to maintain steady profit margins, and wages and labor costs. Survey respondents expected reduced growth in costs and prices of about 5 percent on average over the next year. Backwardlooking, forward-looking, and hypothetical scenarios reveal average cost-price passthrough of around 60 percent, with meaningful heterogeneity across firms.
Subjects: 
prices
business survey
hypothetical questions
JEL: 
D4
E3
L2
Document Type: 
Working Paper

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