Cars and gasoline push Canada industrial prices higher

Tue Jul 30, 2013 8:48am EDT
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OTTAWA (Reuters) - Canadian producer prices rose 0.3 percent in June from May, the first increase since February, thanks to higher prices for gasoline and motor vehicles, Statistics Canada said on Tuesday.

Analysts surveyed by Reuters had expected the industrial product price index to remain flat in the month, as it was in May.

The unexpected increase was due mostly to a 0.8 percent rise in motor vehicles and other transportation equipment as auto prices jumped 1 percent.

Petroleum and coal products also pushed up the index, gaining 0.5 percent on the back of a 1.4 percent rise in gasoline.

A depreciation of the Canadian dollar versus the U.S. dollar in June inflated prices for some goods, particularly vehicles. Without the exchange rate effect, producer prices would have risen 0.1 percent.

Of the 21 major industrial product groups, 15 increased, two fell and four were flat.

On the raw materials side, prices increased 0.3 percent in June as expected. Most of the upward pressure came from a 12.3 percent spike in prices for slaughter hogs, with crude oil contributing to a lesser extent.

In the year to June, industrial prices rose 0.6 percent and raw materials were up 4 percent.

(Reporting by Louise Egan and Alex Paterson; Editing by Kenneth Barry)