July PPI data from Canada

  • Prior was -1.0%
  • Raw materials price index -0.6% vs -0.3% expected
  • Prior raw materials index -3.7%

I suspect these downside surprises are because of the stronger Canadian dollar. That's a sign for the Bank of Canada that stronger CAD has done most of their work for them.

Looking through the data, another drag was motor vehicles. That's likely due to discounting as demand falters throughout the continent for new cars.