CFOs Boost Price Increase Outlook to 5.3%, Cite Monetary Policy Concerns
US corporate chief financial officers (CFOs) are increasing their price increase expectations for both this year and next, citing monetary policy as a major concern. According to the Federal Reserve's quarterly survey of roughly 500 firms, CFOs now expect to raise prices by an average of 5.3% this year, up from 4.6% in the second quarter and 3.6% at the start of the year.
The projected increase for next year also rose to an average of 4.5%, surpassing the 4.1% recorded in the second quarter and 3.6% at the beginning of the year.
Notably, the survey reveals a shift in what companies identify as their foremost concern. While mentions of inflation have declined, approximately 20% of firms now rank 'monetary policy' as their top worry, up from below 15% in the previous survey.