8:30 AM EDT, Canada Raw Material and Industrial Product Price Indices for the month of July
Estimate: RMPI 0.2 versus 4.4% last month, IPPI 0.7% versus 1.3% last monthThe Canada Raw Material Price Index and the Industrial Product Price Index for the month of June will be released at 8:30 AM EDT.  The RMPI measures the cost of materials used by manufacturers.  The IPPI measures the change in price of goods sold by manufacturers.  Last month the RMPI increased by a higher than expected 4.4%.  The expectation was for a 3.0% increase as energy and raw commodities soared.  The IPPI rose by a less 0.7%.   This was actually lower than expectations as manufacturers held back on price rises.

For July, the RMPI is expected to slow finally after 4 months of large gains. The index is expected to show a rise of 0.2% for the month while the IPPI is expected to rise by 0.7% as manufacturers feel the squeeze from the large raw material increase over the last few months.  The risk always exist that Raw Material Prices find their way into the final cost of goods eventually- especially if inflation moves from being transitory to more permanent.