Canada CAD

Canada PPI YoY Final

Info

History

Chart

Impact:

Low

Source: Statistics Canada

Latest Release:

Date:

Surprise:

-0.2%

Actual:

18.1%

Forecast: 18.3%

Previous/Revision:

16.7%

Period: Nov

What Does It Measure?

The Canada Producer Price Index (PPI) Year-over-Year (YoY) Final measures the average changes in selling prices received by domestic producers for their products over a year. This indicator primarily focuses on production cost changes, reflecting inflationary pressures in the manufacturing sector and its impact on overall economic conditions.

Frequency

The Canadian PPI YoY Final is released monthly, typically on a specific day of the month, and the figures presented are final data reflecting comprehensive estimates of price changes without initial revisions.

Why Do Traders Care?

Traders monitor the PPI as it provides insights into inflation trends that can influence monetary policy decisions. Higher-than-expected results may signal increasing inflation, potentially leading to stronger interest rates and a bullish sentiment for the CAD, while lower results could indicate reduced inflationary pressures, which might bear negatively on the CAD and equities.

What Is It Derived From?

The PPI is calculated using comprehensive data collected from a wide range of industries, focusing on the prices producers receive for their goods. The methodology includes large-scale surveys of businesses, utilizing various statistical techniques to ensure accurate weighting and representation of price movements across sectors.

Description

Preliminary data for the PPI is based on early reports and is subject to revisions, while the final data provides a more accurate depiction of price changes that are released afterward. The YoY reporting method is utilized to compare the index with the same period in the previous year, which helps in eliminating seasonal fluctuations and revealing long-term trends in production prices.

Additional Notes

The PPI serves as a leading economic indicator that gauges future consumer price trends and inflation levels, which correlate with overall economic activity. It is also important to note that changes in the PPI can influence other inflation measures such as the Consumer Price Index (CPI) in related economies and provide a comparative analysis across global markets.

Bullish or Bearish for Currency and Stocks

Higher than expected: Bullish for CAD, Bearish for Stocks. Lower than expected: Bearish for CAD, Bullish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Actual	Forecast	Previous	Surprise
Jan 04, 2022	18.1%	18.3%	16.7%	-0.2%
Nov 29, 2021	16.7%	16.7%	15.3%
Oct 29, 2021	14.9%	15%	14.7%	-0.1%
Sep 29, 2021	14.3%	14.9%	15.7%	-0.6%
Aug 27, 2021	15.4%	16.2%	17.2%	-0.8%
Jul 30, 2021	16.8%	16.2%	16.9%	0.6%
Jun 30, 2021	16.4%	16.9%	14.3%	-0.5%
May 31, 2021	14.3%	14.2%	10.3%	0.1%
Apr 30, 2021	10%	9.4%	7.1%	0.6%
Mar 31, 2021	7.1%	6.9%	4.4%	0.2%
Feb 26, 2021	4%	3.8%	2%	0.2%
Jan 29, 2021	1.8%	1.5%	0%	0.3%
Jan 05, 2021	0%	0.1%	0.7%	-0.1%