UPDATE 1-Canada producer prices drop for fourth consecutive month in Nov

Tue Jan 5, 2016 8:41am EST
 
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OTTAWA Jan 5 (Reuters) - Canadian producer prices fell 0.2 percent in November, their fourth consecutive drop, on lower prices for precious metals such as gold and silver, Statistics Canada said on Tuesday.

Market operators polled by Reuters had forecast no change from October. Among the 21 major commodity groups, 11 rose, eight declined and two were unchanged.

Prices for primary non-ferrous metal products dropped by 3.5 percent in the largest month-on-month decline since April 2013, pulled down by unwrought silver and gold and their alloys. Copper and aluminum prices also fell.

The decline was largely moderated by a 1.2 percent increase in motorized and recreational vehicle prices, which rose on the back of a weaker Canadian dollar.

Some exporters price their goods in U.S. dollars, which means they get more Canadian dollars as the domestic currency loses value. The Canadian dollar depreciated 1.6 percent against the U.S. greenback in November.

Raw material prices fell by 4.0 percent from October on the back of a 5.7 percent drop in prices for crude energy products. Compared with November 2014, raw materials prices fell by 16.3 percent.

(Reporting by David Ljunggren; Editing by Lisa Von Ahn)