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Canada February producer price index +0.4% m/m vs +1.1% expected

Prior was +2.7% (revised to +2.8%)PPI y/y +5.4% vs +5.4% priorRaw materials price index +0.6% m/m vs +7.7% priorRaw materials price index +8.6% y/y vs +8.0% priorNormally, the Bank of Canada would give a lower reading like this some attention but with energy prices spiking, that won’t be the case this year and instead they will wait for March data and to see what will happen with the war.The IPPI rose 0.4% month over month, a sharp deceleration from the 2.8% gain in January. Exclude energy and petroleum products and the index actually declined 0.4%. That tells you how narrow this move really was.Energy did all the heavy lifting. Refined petroleum products surged 8.2% on the month, with diesel climbing 10.5% as Iran-US tensions escalated through the second half of February. That’s a geopolitical risk premium getting priced in, and it’s the kind of move that can unwind just as quickly as it materialized.The easing of inflationary signals elsewhere are difficult to dismiss (at least pre-war). Primary non-ferrous metals fell 3.7% — their first decline since April 2025 — with silver and platinum group metals both retreating roughly 11%. Meat and dairy slid 5.9%, the steepest decline since July 2020, as poultry prices collapsed nearly 17% following Canada’s decision to lift its ban on Brazilian chicken imports.On the raw materials side, the RMPI gained 0.6% but ex-energy it was down 1.1%. Metal ores declined 2.7% as Chinese iron ore stockpiles continued to build.The canola story is worth watching — prices rose 6.3% after China announced a substantial reduction in tariffs on Canadian canola seeds effective March 1. A rare constructive development in the Canada-China trade relationship.Year-over-year, gold and precious metals remain the dominant theme, with that group nearly doubling. But the broader picture is one where energy volatility is masking genuine softness in manufacturing prices.
This article was written by Adam Button at investinglive.com.

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💡 DMK Insight

With ADA at $0.26, the recent PPI data and raw materials index are key indicators for traders right now. The PPI y/y at +5.4% matches expectations, but the raw materials price index’s jump to +0.6% m/m from +7.7% prior suggests inflationary pressures are still present. This could impact the Bank of Canada’s monetary policy, especially with energy prices on the rise. For ADA traders, these economic indicators could influence market sentiment, particularly if inflation leads to a more hawkish stance from central banks. Watch for ADA to react to any shifts in investor sentiment as inflation concerns mount. But here’s the flip side: if energy prices stabilize or decline, we might see a shift in the inflation narrative, which could provide a bullish sentiment for ADA. Keep an eye on the $0.25 support level; a break below could trigger further selling pressure. Conversely, a rally above $0.27 could signal a bullish reversal, so those are the levels to watch closely in the coming days.

📮 Takeaway

Monitor ADA closely around the $0.25 support and $0.27 resistance levels as inflation data unfolds; these could dictate short-term price movements.

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