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The producer price index (PPI) for stage 4 intermediate demand, which tracks inputs for goods and services nearly ready for sale to consumers and businesses, grew by 8% year-on-year in October.
Ernie Tedeschi shared this data, noting that this measure is closely linked to final demand and gives insight into last-mile price pressures.
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Tedeschi has previously detailed how the strongest U.S. GDP growth periods after WWII followed recessions, with 1950 growth further supported by the Korean War (link). He has also observed that the effective tariff rate was 4 percentage points lower than a year ago, noting possible lag effects in passthrough (link). These earlier findings provide additional context for his analysis of current price pressures.