From Citi:
CPI "data suggest the Fed's preferred measure of core inflation is decelerating slightly from a 1.9% year/year pace already seen in the past two months, with some hope that the period of weaker demand, while concentrated in housing, will still prove
disinflationary when measured overall... Housing imbalances remain large, with 13.6% of the U.S. housing stock vacant. With new single-family home inventories most recently 73% above the level at the start of the current expansion, single family permits fell 8.1% in August, the largest one-month drop since January 1995. While broad housing starts and work-in-progress data showed smaller declines and gains in multi-family activity in August, the permits data provide the best indication that another leg down in construction activity is now underway."
