Canada industrial product price preview
Canada industrial product price preview: analysts expect the IPPI, due Friday, to rise 0.5% (m/m, nsa) in August after the 1.5% tumble in July. Commodity prices increased, gasoline prices gained but the loonie was again sharply stronger relative to the U.S. dollar, a mix that analysts expect will leave a gain the IPPI this go-around. Indeed, the Canadian dollar was stronger (on a month average basis) in August versus July, suggesting the currency will exert sizable downward pressure on both the IPPI and RMPI. This is the main downside risk for our total IPPI forecast. The IPPI is expected to post a 2.1% y/y rate of increase in August after the 1.3% gain in July. The RMPI is projected to rise 1.0% m/m in August after the 0.6% drop in July, driven by a 2.9% gain in oil (WTI) prices to $48.03 from $46.67. View the preview.