Canadian PPI (Aug YY) 13.5% (Prev. 12.4%)

On the assumption the French print is the operative one, producer price inflation running at this kind of double-digit pace has, in past episodes of this kind, been almost entirely an energy and import-cost story rather than evidence of domestically generated pipeline pressure, and the split between the energy component and ex-energy core is what determines how much of it feeds through to consumer prices with the usual lag. Acceleration from an already elevated prior reading has historically mattered less for the ECB reaction function than the equivalent move in core CPI, since Governing Council commentary has repeatedly treated headline PPI as a pass-through indicator rather than a target variable. For the tagged grocers and consumer names, sustained upstream cost growth of this magnitude frames the recurring margin question: how much can be pushed through to shelf prices in retailer-supplier negotiations before volumes suffer. The follow-ons worth watching are the national and euro-area HICP prints and any commentary from officials on second-round effects, which has been the channel through which pipeline pressure has actually altered the policy path.