Inflation Eases But Prices Stay High, Squeezing Consumers and Businesses
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Inflation has fallen but prices remain high and consumers like restaurant owner Steve DelGiorno feel they can't hold out much longer without raising prices.
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While official inflation metrics have improved, measures of inflation expectations and price consciousness among consumers and businesses remain elevated.
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Costs continue rising for many businesses, leading a net 25% of small businesses to recently raise prices, with a third expecting to hike prices further.
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Wage growth has shown some signs of easing, indicating a possible return to normal according to some experts.
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Fed faces a balancing act in cutting rates to support the economy while waiting long enough for "price nostalgia" among consumers to fade to regain true price stability.