Canada IPPI for January 3.0% versus 0.9% estimate

• Industrial product price index (IPPI) 3.0% vs 0.9% estimate
• IPPI YoY 16.9% vs 16.1% last month
• Raw material price index (RMPI) MoM 6.5% vs 4.9% estimate
• RMPI YoY 30.5% vs 29.0% last month

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Highlights:

• This was 5th consecutive monthly gain
• the game was a strong assistance May 2021 when it rose 3.0%
• The growth was driven mainly by higher prices for refined petroleum products (10.6% versus -4.9% last month), in lumber (+14.6%) and other sawmill products.
• The RMPI was driven by higher prices for conventional crude oil. Excluding crude energy products the RMPI rose 1.0%
• conventional crude oil prices rose 16% in January which was the largest increase since June 2020 when it rose 20.0%. YoY conventional crude oil prices rose 63.2%

The Raw material price index continues to push to the upside after some leveling.

The Bank of Canada meets this week and are expected to raise rates by 25 basis points.

Today, the USDCAD is trading near its lows and back below its 100/200 hour moving averages (blue and green lines)