Prices increased at a modest pace since the September FOMC meeting and economic activity was little changed around the country, the Federal Reserve's Beige Book said Wednesday. Labor market tightness also continued to ease across the country.

Consumer prices increased at a slower rate than input prices, as businesses struggled to pass along higher costs because consumers have become more sensitive to prices, according to the Fed's summary of economic conditions based on business contacts. Input cost increases have also slowed or stabilized for manufacturers though were still rising for services sector firms.

"Overall, firms expect prices to increase the next few quarters, but at a slower rate than the previous few quarters. Several Districts reported decreases in the number of firms expecting significant price increases moving forward," the Beige Book said. "The near-term outlook for the economy was generally described as stable or having slightly weaker growth." (See: MNI INTERVIEW: Credit Tightening To Crimp US Small Firm Hiring)

The information was prepared by the St. Louis Fed based on information collected on or before October 6.