Canada producer prices drop for third consecutive month in October
OTTAWA (Reuters) - Canadian producer prices in October fell for the third consecutive month, dropping 0.5 percent from September on lower prices for motorized and recreational vehicles, Statistics Canada said Friday.
Market operators polled by Reuters had forecast a 0.1 percent drop. Among the 21 major commodity groups, two rose, 18 declined and one was unchanged.
The stronger Canadian dollar helped pull down prices for motorized and recreational vehicles by 1.1 percent.
Some exporters price their goods in U.S. dollars, which means they get fewer Canadian dollars as the domestic currency gains value. The Canadian dollar appreciated 1.5 percent relative to the U.S. greenback in October.
Energy and petroleum products fell by 1.0 percent, thanks to a 1.8 percent drop in motor gasoline prices. Excluding the energy group, producer prices fell 0.4 percent.
Raw materials prices rose by 0.4 percent from September on the back of a 2.4 percent increase in prices for crude energy products. Compared to October 2014, raw materials prices fell by 17.5 percent.
(Reporting by David Ljunggren; Editing by Jeffrey Benkoe)
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