- U.S. producer prices rose 0.7% in August, pushing the yearly rate to 1.6%. That was more than expected and the biggest jump since June 2022. As with CPI, fuel costs accounted for most of the gain.
- Consumer sentiment slipped in September, according to the University of Michigan. But, the inflation outlook fell to the lowest in more than two years. Year-ahead inflation expectations dropped to 3.1% from 3.5% in the prior month. Meantime, the five-year forecast fell to 2.7%, after holding at 3.0% for three straight months.
Canadian industrial prices rose above expectations in August (+1.2% m/m), mostly on higher energy (ex-energy was +0.2%). This points to some upside risk for Tuesday’s CPI report, where headline is expected to rise 3.9% y/y (from 3.3.%).
Consumer prices in China clawed their way out of deflationary territory, climbing 0.1% y/y in August. Meantime, producer prices fell 3.0% y/y, but the decline moderated from a 4.4% drop in the prior month. An economic slowdown pushed the central bank to cut its reserve requirement ratio by 25 bps, the second reduction this year.