Canada August producer price index +0.5% m/m vs +0.2% expected | investingLive

• Prior was +0.7%
• Producer prices +4.0% y/y vs +2.6% prior
• Raw materials price index -0.6% m/m vs +0.3% prior
• Raw materials price index +3.2% y/y vs +0.8% prior
• Raw materials price index excluding crude energy up 15.5% y/y

Falling oil prices have keep producer price in line this year but this is a surprise uptick. Higher prices for chemicals and chemical products, meat, fish and dairy
products, motorized and recreational vehicles, and primary non-ferrous
metal products contributed the most to the increase while energy moderated it.

Meat prices were a big driver led by beef up +5.2% m/m. On the metals side, it was mainly gold and silver.

Overall, crude oil prices are down 16.2% y/y and that’s a big input to indexes like this. If you strip that out (and low prices for oil won’t last forever), then you instantly have more of an inflation problem. The slop in the raw materials index nearly matches the 2021-22 period.