Scotiabank Expects CPI Gain this October

In Toronto this Monday, the commodity price index is expected to have a regain to the positive side after the numbers were tallied this October. Going back to the decline of 1.8% that happened last September this year according to the survey of Scotiabank conducted monthly, the bank has been doing its best to go higher this time. Primarily, it was the sector of agriculture that suffered the said decline last September where seasonal aspects which includes grain prices because of pressures in harvesting. That time, the agriculture sector went down to about 6.1% according to the Scotiabank’s Commodity Price Index.

Aside from the sector of agriculture, oil and gas were also included as causes of the decline last September. Oil and gas went down by 2.5% and this is lower compared with the preceding month. Other factors that went down include metals and minerals by 1.1% together with other base metals and precious metals such as potash, molybdenum, and uranium.

The expected rise of the commodity price index is mainly caused by the weakening US dollar especially these latter weeks of October. The continuous dollar crash is expected to continue up to 2010 which is favorable to the commodity price index of the bank. This only means that dollar becoming softer lately can help other currencies to go higher. These currencies include euro and Canadian dollar. The bank’s index remained at the top of the April cyclical law by 4.3%. Along with this, oil and natural are expected to be lifted that will give Scotiabank a boost to go higher this October.