Other reports pointed to more persistent inflationary pressures. Growth in unit labour costs remains strong, posting a 10.8% annualized rate in the preliminary Q2 estimate. And, the University of Michigan's preliminary survey for August indicated that consumers' five-year inflation expectations edged up 0.1 ppt to +3.0%.
Meantime, aggressive central bank tightening continues to weigh on house prices. In Canada, the average price of an existing home existing home fell 5.0% y/y in July.
Producer prices in China decelerated to +4.2% y/y in July thanks to easing commodity costs. However, consumer prices rose at their fastest pace in two years, by 2.7% y/y, led by pork and vegetable prices.