Business across most of the US was ``slow'' last month, while almost all Federal Reserve districts reported pressure to raise prices because of higher commodity costs, the central bank said in its regional economic survey.

Consumer spending was ``slow'' in most of the 12 Fed districts as the housing market ``weakened or remained soft,'' the Fed said in its Beige Book report, published two weeks before policy makers meet to decide on interest rates. A ``general pullback in hiring'' helped keep wage increases ``moderate,'' the Fed said today.

With the economy weakening under the impact of the yearlong financial crisis and housing recession, and consumer prices rising, most investors anticipate the Fed will keep interest rates unchanged through December. Policy makers have lowered the rate 3.25%age points over the past year.

``The pace of economic activity has been slow in most districts,'' the report said. ``Wage pressures were characterized as moderate by most districts amid a general pullback in hiring.''

While prices of energy and other commodities have declined recently, the Fed said companies in the San Francisco district, the largest region, reported that ``upward price pressure remained significant,'' while ``price levels remained high'' in three other districts. Philadelphia-area retailers saw ``rising wholesale costs,'' the Fed said.

Wednesday's report was prepared by the Philadelphia Fed, based on information collected on or before Aug. 25.

Fed debate

The survey comes amid a debate among policy makers about the magnitude of the threats posed by inflation and the credit crisis.

In a speech, Boston Fed President Eric Rosengren said the US credit crunch has blunted the impact of the Fed's rate cuts, signaling he opposes raising borrowing costs. By contrast, the Fed said yesterday that directors of three other district banks asked to raise the charge on loans to commercial banks at the Aug. 5 policy meeting.

The previous Beige Book, released July 23, reported ``elevated or increasing'' price pressures amid slower economic growth.

Five districts indicated ``a weakening or softening'' in their economies, and consumer spending was ``sluggish or slowing'' in every region.

At the last meeting, Fed policy makers agreed that their next change in rates would be an increase, with some officials concerned about inflation favoring an increase earlier than traders expect, according to minutes of their meeting.