Industrial producer prices (these are the prices producers receive for goods as they leave the factory: petroleum products, metals, timber, food, cars) - +2.0% m/m versus +1.3% and +14.5% y/y versus 13.5%. The raw materials price index (how much factories themselves pay for oil, ore, grain, timber) - +4.8% m/m versus +3.3% and +27.0% y/y versus 22.9%.
The contrast matters: the consumer price index released the same week came in weak, while input costs for production are accelerating. That is, pressure on prices is currently sitting not on store shelves but in production costs - and it may reach the buyer later.
A separate nuance: part of Canadian exports (timber, metals, energy) is sold in dollars, so a weak Canadian dollar by itself inflates this index, without any real price growth.
October 28 - Bank of Canada meeting. The market is pricing in an 80% probability of a rate hike at this meeting.
The reaction in currencies was restrained: USD/CAD fell by 10 pips, to 1.4035 (a pip is the fourth decimal place). Canadian producer price data cover only goods and are not part of the Bank of Canada's main inflation gauge, so the market barely reacts to them.
At the same time, S&P 500 futures were down 0.9%, but this read not as a broad flight from risk but as money exiting US artificial intelligence stories. For a CAD trader, the key date of the week is one - October 28.
Were you in USD/CAD when the numbers came out?
Waited for 15:33 and watched 1.4035 twitch by a couple of pips - that means your trading lives by the statistics calendar. Prop firms have different attitudes to this: some consider a trade at the moment of data release a violation, others run their entire program on news windows, and Canadian pairs are not on every instrument list. All of this is written in the challenge terms before you pay. Before the Bank of Canada meeting on October 28, there is time to check.