Canada Industrial Product Price Preview
Canada Industrial Product Price Preview: The IPPI, due Wednesday, is expected to grow 0.7% (m/m, nsa) in October after the 0.4% gain in September. Higher gasoline prices, firmer commodity prices and a weaker loonie are all consistent with a back-up in the IPPI compared to September. The BoC's commodity price index surged 4.6% in October after the 0.3% dip in September. Meanwhile, the CPI's gasoline price index jumped 3.7% m/m in October after the 0.8% rise in September. The Canadian dollar was weaker (on a month average basis) in October versus September, suggesting the currency will put upward pressure on both the IPPI and RMPI. The IPPI is expected to post a 0.5% y/y rate of increase in October after the 0.5% y/y drop in September that was the eighth decline in a row. The RMPI is projected to surge 5.0%, driven by a 10% run-up in crude oil prices.