Long Term Perspective

The GDP price index is the broadest measure of price inflation faced by consumers and producers, yet it gets less attention than the CPI or the employment cost index.

Short Term Perspective

The employment cost index accelerated over 2006 and into 2007 reflecting strong wages & salaries and benefits. The CPI also firmed over the last three quarters, mostly due to higher oil prices. The GDP price index has moderated over the past year, largely due weakness in components not found in the CPI.  These weak components include nonresidential structures, residential structures, and equipment & software.