The Federal Reserve said the US economy grew “modestly” through early October but performances were mixed in different parts of the country, with activity slowing in a couple of places.

“National economic activity expanded modestly on net since the previous report; however, conditions varied across industries and Districts,” the Fed said Wednesday in its Beige Book report, published two weeks before each meeting of the policy-setting Federal Open Market Committee. “Outlooks grew more pessimistic amidst growing concerns about weakening demand.”

The report was based on anecdotal information collected by the Fed’s 12 regional banks through Oct. 7 and compiled by the Dallas Fed.

“Four Districts noted flat activity and two cited declines, with slowing or weak demand attributed to higher interest rates, inflation, and supply disruptions,” the Fed said. “Price growth remained elevated, though some easing was noted across several Districts.”

The Fed has been raising interest rates aggressively to try and cool demand to bring down consumer inflation that has remained above 8% for seven straight months.

The central bank is on track for a fourth consecutive 75 basis-point interest-rate hike in early November as policymakers battle the hottest inflation in four decades. Investors are betting on another increase of that size is likely in December, with markets seeing rates approaching 5% next year, after disappointing inflation news.

US core consumer prices, which strip out food and energy, rose 6.6% in September from a year ago, the highest level since 1982, according to a Labor Department report published Oct. 13. That continues a worrying pattern for policymakers after the gauge accelerated in August as well.

Chair Jerome Powell and his colleagues have warned that defeating inflation will probably cause some pain, including a higher rate of unemployment. Officials have described the labor market as tight to an unhealthy degree, though job growth has moderated recently. Nonfarm payrolls increased 263,000 in September and the unemployment rate dropped to 3.5%, matching a five-decade low.

Economic growth may have picked up in the third quarter, with the Atlanta Fed’s tracker of growth domestic product pointing to expansion of close to 3% in the quarter.

This article was provided by Bloomberg News.