US: Headline PPI to rise 0.4% in September – TDS

Markets turn to US producer prices for September, which should be viewed with caution amid upside distortions from the hurricanes and the consensus expects the headline PPI to rise 0.4% m/m (2.6% y/y), with the two core indexes up 0.2 %m/m, according to analysts at TDS.

Key Quotes

“We are prone to fade any upside in the PPI report, given a low rate of pass-through to CPI and our view that hurricane impacts will be confined to food and energy. Jobless claims are released at the same time and are expected by the market to slip to 250k from 260k. The Fed calendar includes Fed Governors Powell and Brainard, who are speaking at 10:30 EST. Brainard is participating on a monetary policy panel with ECB’s Draghi while Powell will be speaking on emerging markets.”

“Canada: Housing data continues with the New Housing Price index, which is expected by the market to rise 0.2% m/m in August. Details to watch are the house-only segment which feeds into CPI as well as the regional breakdown. Alongside the report is the Teranet/National Bank house price index for September.”