A closely watched survey by the US Federal Reserve shows that many businesses in the country believe that wage growth will soon start to slow down.

The latest "Beige Book" is based on interviews with companies in the central bank's 12 districts.

Managers in most of the places believe wages will grow at a slower pace in the near term.

If that happens, then inflation would also slow down, stirring speculation that the Fed will hold off on further hikes in interest rates.

Analysts have argued that US inflation is caused by higher labor costs passed on to the prices of end products.

Economists largely agree that the central bank will decide against a rate-hike at its policy meeting this month. They are waiting to hear what Fed Chair Jerome Powell will say afterward about rate levels around the end of the year.

The Beige Book also notes that businesses believe that the US economy expanded at a modest rate in July and August.

It states that job growth was subdued nationwide and shortages of skilled workers persisted.