Canada PPI MoM Prel

Info

History

Chart

Impact:

Low

Source: Statistics Canada

Latest Release:

Date:

Surprise:

0.2%

Actual:

1.3%

Forecast: 1.1%

Previous/Revision:

Period: Oct

What Does It Measure?

The Canada Producer Price Index (PPI) measures the average change over time in the selling prices received by domestic producers for their output. It primarily focuses on the prices of goods sold by manufacturers, assessing key areas such as production costs, inflationary pressures, and overall economic health at the national level.

Frequency

The Canada PPI MoM is released monthly, providing a preliminary estimate that reflects early data, typically published in the second week of the month following the reporting period.

Why Do Traders Care?

Traders closely monitor the PPI as it is a leading indicator of consumer price inflation and can significantly influence monetary policy decisions. An unexpected increase may lead to a bullish sentiment for the Canadian dollar, while lower figures can negatively impact equities and suggest economic weakness.

What Is It Derived From?

The PPI is derived from a comprehensive survey of Canadian producers across various sectors, with data collected using a weighted index methodology that accounts for different industries and product types. It involves tracking price changes through surveys sent to manufacturers and analyzing historical price data.

Description

The preliminary PPI provides an early glimpse of price changes among Canadian producers, often affecting market sentiment and providing insights into inflation trends. Financial markets may react quickly to these figures, particularly if they deviate significantly from analysts' expectations, as they often serve as a barometer for future consumer price index adjustments.

Additional Notes

The PPI is regarded as a leading economic indicator, correlating with consumer price index trends and overall economic growth. It provides insight into supply chain pricing dynamics, which can help inform investors about potential shifts in economic activity both regionally and globally.

Bullish or Bearish for Currency and Stocks

Higher than expected: Bullish for CAD, Bearish for Stocks. Lower than expected: Bearish for CAD, Bullish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Actual	Forecast	Previous	Surprise
Nov 16, 2021	1.3%	1.1%	1%	0.2%
Oct 15, 2021	1%	0.3%	-0.3%	0.7%
Aug 13, 2021	0.1%		0.3%
Jul 14, 2021	-0.4%		3.1%
Jun 15, 2021	3.1%		1.8%
May 13, 2021	1.7%		1.6%
Apr 15, 2021	1.6%		2.6%
Mar 15, 2021	2.5%		2%
Feb 12, 2021	1.9%		1.6%
Jan 13, 2021	1.4%		-0.6%
Dec 11, 2020	-0.6%		-0.4%