Canada PPI MoM for August 0.7% vs 0.3% estimate

Industrial Product Price Index (IPPI):

• Prior month 0.3%
• PPI (industrial product prices) MoM 0.7% versus 0.3% expected.
• Producer prices YoY 2.6% vs 1.7% last month. This was the 10th consecutive increase

Details of the IPPI:

• Largest upward contributor: unwrought gold, silver, and platinum group metals (+33.7%) — driven by safe-haven demand

• Other notable increases:

  • Fresh and frozen beef and veal +16.5%

  • Softwood lumber +12.0%

• Downward contributors:

  • Finished motor gasoline -10.9%

  • Oilseed cake and meal -33.2%

  • Motor vehicle gasoline engines and parts -12.1%

Raw Material Price Index (RMPI):

• Raw material prices MoM 0.3% vs 2.7% last month. Excluding energy products, the RMPI rose 0.4%
• Raw material Prices YoY 0.8% versus 1.1% last month. If you exclude crude energy products, the RMPI posted a 12.6% year-over-year rise.

Details of the YoY:

• Excluding crude energy products: RMPI surged +12.6% YoY

• Key upward contributors:

  • Gold, silver, and platinum group metal ores and concentrates +30.9%

  • Cattle and calves +17.1% (driven by short domestic supply)

  • Hogs +18.1% (supported by strong demand)

• Key downward contributors:

  • Conventional crude oil -18.0%

  • Synthetic crude oil -15.2% (both moderated overall RMPI increase)

This article was written by Greg Michalowski at investinglive.com.