North American stocks may rise Wednesday, boosted by a U.S. report showing tame consumer inflation in July.

U.S. consumer prices rose 0.4% in July on higher energy prices, but core inflation came in below expectations with a 0.2% jump due to a steep slide in clothing prices.

Separately, housing starts dropped 2.5%.

Canadian manufacturing rallied in June with the largest monthly increase of shipments in 10 months, Statistics Canada said today.

Manufacturing shipments increased 1.9% to $51.4 billion in June, the highest level since January 2006.

While the trend for manufacturing is positive, shipments have been consistently in the $50 billion to $52 billion a month range for the last two years.

The Canadian dollar opened at 89.02 cents US, unchanged.

Crude-oil prices fell 13¢ to US$72.92 a barrel as a cease-fire held in Lebanon. Weekly U.S. inventory figures due today are expected to reflect BP’s partial production shut-in in Alaska.

Most Asian markets rose, boosted by Tuesday’s rally on Wall Street and weaker than expected U.S. wholesale inflation data.

Tokyo’s Nikkei 225 index added 255.17 points, or 1.61%, to finish at 16,071.36 points. It was the Nikkei’s highest close since May 19.

In Hong Kong, the blue-chip Hang Seng Index rose 176.96 points, or one%, to 17,451.03.

North American stocks rallied Tuesday, as investors were cheered by an economic report that provided indication U.S. inflation might be in check.

The S&P/TSX composite index gained 126.99, or 1.07%, to 11,977.15.

Teck Cominco raised its bid for Inco to $89 per share from $82.50, in response to a bid from Brazilian firm CVRD. Inco shares rose 95¢, or 1.07%, to $89.75, and Teck Cominco gained 81¢, or 1.03%, to $79.81.

The S&P/TSX Venture composite index edged down 9.52 points, or 0.37%, to 2,593.77.

In New York, markets jumped on the release of the producer price index report.

The Dow Jones industrial index gained 132.39 points, or 1.2% to 11,230.26. The Nasdaq composite index rose 45.97 points, or 2.2% to 2,115.01. The S&P 500 gained 17.37 points to 1,285.58.

The U.S. Labor Department said today that wholesale prices increased just 0.1% in July, while the core rate, which excludes food and energy, fell by 0.3%.