BMO Nesbitt Burns says that this morning’s economic data points to lower inflation, a stronger dollar and resilient consumers — a triple scoop of good news for the Canadian economy.

Canadian industrial product prices fell a larger-than-expected 0.9% in June, and prices for raw materials took a 1.6% dive, also below expectations. Industrial prices are now up just 1.7% on an annual basis, the smallest advance in two years.

“A key point is that the Canadian dollar was actually responsible for much of the monthly decline in costs,” says BMO Nesbitt Burns. “The loonie rose over 1% on average last month and, according to Statistics Canada, industrial product prices would have dropped 0.4% in June if the exchange rate effect was removed.”

Also, in other market data, department store sales were reported up 0.6% in June. BMO says that although the year-over-year trend slowed, “the report supports the view that Canadian consumers are hanging in”.

It also notes that “As in the United States, core industrial prices are in retreat. With energy prices also falling, inflation is poised to ratchet lower in the second half of this year.”