Canada November PPI +2.2% vs +1.1% y/y prior

  • Prior was +1.1%
  • Monthly PPI +0.6% vs +1.2% prior
  • Raw materials price index +2.0% vs -2.8% y/y prior
  • Raw materials price index -0.5% vs +3.8% m/m prior (revised to -2.6%)

The falling Canadian dollar is a big reason why this report as been climbing in the past two months as most commodities are priced in USD. These are the seeds of currency-driven inflation, though given the weakness in the Canadian economy, this isn’t the kind of thing that causes a wage-price spiral.

Some drivers:

  • Prices for lumber and other wood products (+5.7%) posted the largest month-over-month increase since
    March 2022
  • Energy and petroleum products rose 1.1% in November
  • Prices for motorized and recreational vehicles rose 0.7% month over month in November
  • The largest upward
    contributor to November’s year-over-year increase was unwrought gold, silver, and platinum group metals, and their
    alloys (+32.5%)

This article was written by Adam Button at www.forexlive.com.

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