Canada Jan industrial product price data now out 28 Feb
- -0.1% prev
- raw materials index mm 3.3% vs -0.9% prev
Says Statistics Canada:
- Prices for energy and petroleum products (+3.4%) were largely responsible for the increase in the IPPI in January. The increase in this product group was mainly due to higher prices for motor gasoline (+3.8%), diesel fuel (+4.6%) and light fuel oils (+3.8%). The IPPI excluding energy and petroleum products edged down 0.1%.
- Primary non-ferrous metal products (+1.0%) and meat, fish and dairy products (+0.9%) also contributed to the increase in theIPPIin January, but to a lesser extent.
- Higher prices for unwrought precious metals and precious metal alloys (+2.8%) were mainly responsible for the increase in primary non-ferrous metal products. Unwrought aluminum and aluminum alloys (+1.2%) and unwrought copper and copper alloys (+1.2%) also exerted upward pressure on this product group.
- The increase in meat, fish and dairy products was mainly due to higher prices for fresh and frozen beef and veal (+3.2%). Prices for fresh and frozen pork (+0.8%) and fresh and frozen poultry of all types (+0.9%) also rose in January.
- The increase in theIPPIwas primarily moderated by lower prices for motorized and recreational vehicles (-0.9%). The decline in this product group was mainly attributable to lower prices for motor vehicle engines and motor vehicle parts (-1.5%), aircraft (-2.4%) and aircraft engines, aircraft parts and other aerospace products (-2.3%).
- The decrease in prices for motorized and recreational vehicles was closely linked to the appreciation of the Canadian dollar relative to theUSdollar.
The Industrial Product Price measures price changes for major commodities sold by Canadian manufactures. Changes in the IPP are widely followed as an indicator of commodity inflation.
Full report here
USDCAD 1.2780 still trading tightly but underpinned at 1.2760 for the moment
