There are signs that wage growth and inflation may soon slow further, according to a new report out Wednesday from the Federal Reserve.

The Fed’s Beige Book revealed Wednesday that businesses in several districts struggled during August to pass on costs to consumers, as costs of making goods are growing faster than prices.

The Beige Book compiles anecdotal evidence across the Fed’s 12 bank districts. Central bank officials will use this information in two weeks when they meet for their policy meeting.

In July Fed officials raised interest rates for the 11th time since March 2022 in what may be the first of two rate hikes that officials have penciled in for the remainder of the year.

The Fed will hold its next policy meeting on Sept. 19-20, when officials are expected to take a breather and hold rates steady in the range of 5.25%-5.5% to make sure inflation data continues to show cooling.

In New York, companies in both the service and manufacturing sectors reported that costs picked up a bit in recent weeks—and firms said that consumers have become more price-conscious, and now price is often the most important factor in purchasing decisions.

Most districts reported price growth slowed overall, decelerating faster specifically in manufacturing and consumer goods sectors.

Districts across the country saw subdued job growth, as companies continued to deal with a shortage of skilled workers for open jobs and the pool of job applicants remained limited.

That trend has kept power in the hands of workers and helped boost wages.

Though, many contacts suggested "the second half of the year will be different" when it comes to wage growth. Businesses across the country reiterated their expectations that wage growth will slow broadly in the near term.

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