-- The jump in March industrial product prices (IPPI) was no surprise, given higher energy prices in the month, but food was another story, said Bank of Montreal (BMO) after Thursday's IPPI data.
"Curiously," prices for food manufacturing slid month-over-month by a record amount, dragging down year-over-year growth to just over 3%, noted the bank.
BMO recalls that readings through late-2025 and into early 2026 were getting "worrisome," pushing above 7% year over year. The bank says "worrisome" because these industrial prices are a pretty good leading indicator of prices faced by consumers at the grocery store.
And those grocery prices can be tough psychologically -- in other words, reinforcing inflation expectations.
For now, this points to "steady/cooler" grocery price inflation ahead, but the bank will see if there's not a snap back in the coming months.