
Statistics Canada reveals November’s IPPI at 0.1% and RMPI at 1.5%
- Statistics Canada announces IPPI to have gained 0.1% in November.
- RMPI matched the analysts' estimate in November and was recorded at 1.5%.
- The forex market responded moderately to the economic data with only a 20 pips gain in USD/CAD.
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Statistics Canada announced IPPI (Industrial Product Price Index) and RMPI (Raw Materials Price Index) on Monday. While the former was noted shy of the analysts’ estimate, the latter came out in line with the expectations.
Canada’s IPPI gained 0.1% in November against the analysts’ forecast of 0.4% for the month. RMPI, on the other hand, was recorded 1.5% higher in November that aligned itself with the experts’ estimate. In the prior month, RMPI had contracted by 1.9% while IPPI was capped at 0.0% (no change) in October.
Change In IPPI Largely Attributed To Energy And Petroleum Products
Copy link to sectionThe change in IPPI, as per the report, was largely attributed to energy and petroleum products. IPPI covers 21 prominent commodity groups, out of which, 9 were seen down, 8 were up, while the remaining 4 didn’t post any change in November’s report.
The report highlighted a 1.3% gain in fish, meat, and dairy products. Analysts cited a rising demand due to the holiday season to have contributed to the gain. Major metal products (non-ferrous) recorded a 1.0% decline in November that marked the worst drop since October 2011 that had printed a massive 16.0% decline in prices. In comparison to the same month last year, however, the commodity was reported 6.4% higher.
Products from the energy and petroleum sector hiked by 0.3% in November while an identical gain was printed in vehicles (both recreational and motorized) as well. On the contrary, the chemicals sector balanced the 0.3% gain in energy and petroleum products noting a 0.3% decline in November.
In terms of year over year growth, IPPI was announced to have lost 0.4%.
RMPI Matches With The Analysts’ Estimate For November
Copy link to sectionRMPI covers six primary commodity groups, out of which, only one was seen down, two were up, and the remaining three remained unchanged in November. As per the analysts, the hike in RMPI was largely attributed to the rising prices of conventional crude oil. They further added that conventional crude oil prices have risen by 0.5% from June to November.
The group for animals and related products dropped by 0.2% in November. RMPI registered a 9.3% increase in terms of year over year growth.
The forex market responded moderately to the economic data on Monday. USD/CAD noted a 20 pips gain, rising from 1.2967 to around 1.2988 following the data. 1.3000 continues to act as strong resistance for the pair. Breaking above the crucial resistance will establish a strong bullish pattern for the currency pair.
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