• Prior was +0.4% (revised to -0.1%)
  • Producer prices y/y -0.5% vs -2.7% expected
  • Raw materials price index +3.0% vs +3.5% m/m prior
  • Raw materials price index -4.3% vs -11.1% y/y prior

Given the revision to the prior, this isn't as big of a miss as it first appears but it's still headed in a direction that's worrisome for central banks. The best example might be in raw materials where the big negative dividend on inflation is quickly shifting to neutral, and with oil up another $0.70 today, will soon be a problem.

A short time ago, Canadian housing starts for August were also released and were at 252.8K annualized, down from 255.2K but above the 247.1K expected. There is a big push to build more houses in Canada right now but it will take years to reshape the bureaucracy that's slowing progress.