UPDATE 1-Canada September producer prices drop on lower energy, petroleum

Thu Oct 29, 2015 8:43am EDT
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OTTAWA Oct 29 (Reuters) - Canadian producer prices fell slightly more than expected in September, dropping 0.3 percent from August on lower prices for energy and petroleum products, Statistics Canada data indicated on Thursday.

Market operators polled by Reuters had forecast a 0.1 percent drop. Among the 21 major commodity groups, 15 rose, four declined and two were unchanged.

Energy and petroleum products fell by 3.6 percent, thanks largely to a 7.0 percent drop in motor gasoline prices, which recorded their largest decline since January 2015. Excluding the energy group, producer prices rose 0.2 percent.

A 0.8 percent fall in prices for chemicals and chemical products also helped depress producer prices. The decline was moderated by a 0.6 percent increase in the price of motorized and recreational vehicles due to the depreciation of the Canadian dollar.

Raw materials prices rose by 3.0 percent from August on the back of an 8.2 percent increase in prices for crude energy products. Compared to September 2014, raw materials prices were down 20.9 percent.

(Reporting by David Ljunggren; Editing by Chizu Nomiyama)