Inflation expectations among U.S. business leaders decreased in the third quarter of 2024, according to the Survey of Firms’ Inflation Expectations (SoFIE), which is published by the Federal Reserve Bank of Cleveland.
CEOs and other top executives reported in July (2024:Q3) that they expect inflation as measured by the Consumer Price Index to be 3.4 percent over the next 12 months, down from 3.8 percent in April (2024:Q2). The quarterly survey gathers responses from a large representative panel of firms in the manufacturing and services sectors. The Cleveland Fed reports these survey data because business leaders’ inflation expectations can influence the prices their firms charge customers, and these prices can, in turn, influence the path of inflation.
Each quarter SoFIE captures respondents’ beliefs for expected CPI inflation over the next 12 months. Once per year it asks about beliefs for average CPI inflation over the next five years, CPI inflation over the last 12 months, perceptions of the Federal Reserve’s inflation target, and the probability that CPI inflation over the next 12 months will exceed 5%.
The Federal Reserve Bank of Cleveland is one of 12 regional Reserve Banks that along with the Board of Governors in Washington DC comprise the Federal Reserve System. Part of the US central bank, the Cleveland Fed participates in formulating national monetary policy, supervises banking organizations, provides payment and other services to financial institutions and to the US Treasury, and performs many activities that support Federal Reserve operations system-wide. In addition, the Bank supports communities across its district through research, outreach, and educational activities.
The Cleveland Fed serves an area comprising Ohio, western Pennsylvania, eastern Kentucky, and northern West Virginia through its main office and branches in Cincinnati and Pittsburgh.
For further information:
Chuck Soder
chuck.soder@clev.frb.org
216.672.2798
