Producer price data from StatsCan:

  • Prior was +0.5%
  • Raw materials price index -5.9% vs -4.3% expected
  • Prior raw materials price index 0.0% (revised to +0.2%)

Along with plunging commodity prices (negative for inflation), the Bank of Canada is dealing with a plunging currency (positive for inflation).

There is ample talk about a Sept BOC rate cut and market probabilities are around 25%. This report is a non-factor.