(Reuters) – The U.S. economy outlook is weakening and inflation will remain higher than expected for a while longer, according to a Federal Reserve Bank of Philadelphia survey of economic forecasters.

Forecasts for real GDP growth are at 2.3% per year this quarter. That’s 1.9 points less than in the third survey. The annual rate of 2.3% is predicted to fall next year to 2.3%, and 2.1% 2024. Both numbers are lower than previous estimates.

According to the latest snapshot by the Philadelphia Fed of views from 34 top economic forecasters, they expect headline Consumer Price Index (CPI), inflation this quarter will be 7.1% annually. This is an increase of 3.8% in the previous survey. The headline Personal Consumption Expectations (PCE), inflation for this quarter is also expected to rise from 3.1% earlier.

The forecasts of headline, core CPI and PCE inflation for 2022-2023 have also been revised upward.

The forecasters are expecting a slight increase in unemployment despite the dimming prospects for economic growth due to the Fed’s battle against 40-year-high inflation.

According to them, the unemployment rate will be at 3.6% for this quarter. They expect the unemployment rate to remain at 3.6% in 2022 and 2023. It will rise only to 3.8% within the next two year.