Wednesday, February 17, 2016

Housing permits drop, producer prices rise; all modestly

Now check out this housing report, and the graph on housing permits in particular.  It has the seasonal variation.  And the chart shows that permits have stabilized; no growth in absolute numbers.  But that is a choppy chart, subject to the China rebalancing.  House inflation, 6.2%, YoY, one would think builders would be jumping.

Producer prices up a bit, up big deal, except it was driven by the higher cost of food.  Headline inflation is low, we have had deflation actually.  But house prices up 6%, and health care up 4.6%, the remaining basket must have suffered severe price deflation.

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