These reports provide information on the costs of producing goods in Canada. An increase in costs may be passed on to customers. Thus, rising industrial product and raw materials prices may lead to higher consumer prices. This report is unlikely to spur a reaction from the Bank of Canada, but rising inflationary pressure would certainly be noted and would heighten the concern about a possible pass-through to the CPI.
Both reports are sensitive to petroleum and crude oil prices, and to the Canadian dollar exchange rate. Thus, it is important to follow the change in prices after removing the impact of crude oil and the exchange rate. A stronger U.S. dollar will tend to push up the prices received for industrial products and the prices paid for raw materials.
