According to the Fed, price hikes are moderating marginally, although annual inflation remains strong

According to the Beige Book, firms expect price rise to continue to moderate over the next six months.

Prices in the United States are falling slightly, but annual inflation remains high, according to a Federal Reserve report.

“Price growth continued to slow slightly in recent weeks, but year-over-year inflation remained somewhat elevated,” according to the Fed’s Beige Book, which was released Wednesday and compiles data on current economic conditions from the central bank’s 12 districts throughout the country.

“According to our most recent surveys, the increase in prices received by service providers declined by nearly half a percentage point to 3.8%. Prices received by producers increased marginally but remained mild overall, at a rate of 2.8 percent,” it said.

According to the Fed, both manufacturing and non-manufacturing sectors expect price rise to moderate over the next six months.

Annual consumer inflation in the United States grew to 3.4% in December, up from 3.1% in November, while annual producer inflation rose 1% after a 0.8% year-on-year gain the previous month.