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Producer Price Index (PPI) stage 4 prices, which cover goods and services about to be sold as final, grew 8 percent year over year, setting a non-pandemic record.
Ernie Tedeschi stated that headline PPI is not simply 'wholesale' prices and explained that the PPI Final Demand is a final price index from the business side and wider than just consumer prices. He also pointed out that PPI includes intermediate prices alongside final prices.
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Tedeschi recently noted that computers and software add 25 basis points to core PCE inflation but are not the main driver of the current gap, as seen in recent research. He has also pointed out California's stronger GDP and productivity growth rates compared to the national average in separate analysis. These insights reflect his ongoing focus on the details behind headline economic indicators.