Canada May producer price index 0.0% versus 0.5% estimate

• Prior month 1.5% revised to 1.4%
• Producer Prices MoM 0.0% vs 0.5% estimate
• Producer prices YoY 1.8 % vs 1.4% last month revised to 1.3%. This was the biggest year on year increase since January 2023.
• Raw material prices MoM -1.0% vs 5.5% last month revised to 5.3%. Excluding accrued energy products, the RMPI rose 2.4%
• Raw material prices YoY 7.6% vs 3.1% last month revised to 2.9%

The PPI was unchanged after four consecutive months of increases.

Details:

• Energy prices and petroleum products -3.9% (first decrease after three month-to-month increases. The declines were due to lower prices for crude oil
• Lumber and other wood products -4.9%. Softwoods fell -10.2% for the largest decrease since June 2022
• Primary nonferrous metal products, +4.3%
• Meat, fish and dairy products +1.6%
• Crude energy products fell -6.4% in May for its first decrease since December 2023.

The large YoY RMPI increase is partially explained by base effects. May 2023 showed a large decline of -5.4% which exited the equation for this month.

Ex energy and petroleum products the index rose 0.5%.

There is a little something for everyone in this report. The USDCAD is trading up and down above the 200 bar MA on the 4-hour chart at 1.3685 (currently at 1.3695).

This article was written by Greg Michalowski at www.forexlive.com.