By Kim Mackrael
OTTAWA--Canadian producer prices rose 0.5% in June, led by higher month-over-month prices for energy and petroleum products.
Meanwhile, Canada's raw materials price index remained unchanged, Statistics Canada said Tuesday. Market expectations were for a 0.3% increase in producer prices and a 1.0% rise in raw materials costs, according to economists at Royal Bank of Canada.
The industrial product price index measures the price manufacturers in Canada receive once their goods leave the plant, and does not reflect the final prices consumers pay for goods on store shelves.
Of the 21 commodity groups tracked for the industrial product index, 15 reported increases in June, led by a rise in prices for energy and petroleum products, which were up 2.0% from the previous month. Within the component, a 5.9% increase in the price of motor gasoline was moderated by a 2.4% drop in prices for light fuel oils and a 1.8% decline in prices for diesel fuel.
Higher prices for motorized and recreational vehicles also contributed to the increase in the industrial product price index in June.
The depreciation of the Canadian dollar, which fell 1.5% relative to the U.S. dollar from May to June, was another factor in the increase, Statistics Canada said. That's because some prices in the industrial product price index are reported in U.S. dollars and converted to Canadian dollars using the average monthly exchange rate, the agency said.
On a year-over-year basis, producer prices fell 0.9% in June.
The price index for raw materials used by manufacturers did not change in June. An increase in prices for crude energy and crop products was offset by lower prices for metal ores, concentrates and scrap.
On a 12-month basis, raw material prices fell 17.5% in June.
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