Canada Producer Prices Decline 2.1% in July

By Glenn Johnson

OTTAWA--Canadian producer prices slid in July as companies paid less for raw materials, largely driven by lower prices for energy and petroleum products.

Canada's industrial product price index fell 2.1% in July from the previous month, Statistics Canada said Thursday.

In June, producer prices had eased 1.1% from the previous month. On a 12-month basis, the producer-price index advanced 11.9%.

The data agency said July's slide was influenced by lower prices and demand for crude oil and reduced refiner margins, which dropped after posting six consecutive monthly increases.

This index measures the price manufacturers in Canada receive once their goods leave the plant and doesn't reflect the final prices consumers pay for goods on store shelves.

Prices for raw materials, which track prices paid by manufacturers, fell 7.4% in July after edging down 0.1% in June from May. This was the largest monthly decline for the group since April 2020. Weakening market expectations for global energy demand played a part in the decline, while oil inventories grew, the agency said.

Lower prices were also seen for metal ores, concentrates and scrap as well as for crops.

On a year-over-year-basis, prices were 19.1% higher compared with July 2021.

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(END) Dow Jones Newswires

08-18-22 0851ET