Canada May producer price index -1.0% m/m vs -0.7% expected | Forexlive

• Prior was -0.2% (revised to -0.6%)
• Canada IPPI year on year -6.3% versus -3.5% last month
• Raw material price index -4.9%% MoM versus +2.9% last month
• Raw material prices YoY -18.4% versus -10.8% last month

The latest Bank of Canada rate hike is going to prove to be a mistake. There’s plenty of deflation in the pipeline and consumers are getting hit hard by mortgages. All that Macklem needs to do is wait patiently.

Prices for energy and petroleum products declined by 5.9% monthly and 33.2% annually due to lower diesel, gasoline, light fuel oils, and jet fuel prices. Prices for primary non-ferrous metal products fell by 2.8% monthly and 2.0% annually, driven by lower prices for copper, nickel, and zinc alloys. Primary ferrous metal products fell by 1.3%, and intermediate food products declined 3.8% monthly and 13.4% annually. Meat, fish, and dairy products rose 2.2% monthly and 4.5% annually, and pulp and paper prices decreased 1.8%.

The Canadian dollar is fractionally higher today, bucking the trend in AUD and NZD.