OTTAWA (Reuters) - Weakness in the oil market and strength in the Canadian dollar helped depress Canada’s industrial product prices in September, Statistics Canada said on Thursday.
Cheaper crude oil, grains and oilseeds helped push the raw materials price index down.
Industrial product prices fell 0.5 percent on the month after an identical rise in August; analysts surveyed by Reuters had only expected a 0.2 percent decline. Excluding oil and coal products, prices fell by 0.3 percent.
The rise in the Canadian dollar pushed the industrial product price index down as well since it made prices of exports that are set in U.S. dollars worth less in Canadian-dollar terms.
Raw material prices fell by 1.1 percent on the month, and by 0.6 percent excluding mineral fuels. Analysts had expected a 0.7 percent drop. Oilseeds fell 14.5 percent and grain 3.2 percent on forecasts of an abundant crop.
Reporting by Randall Palmer; Editing by James Dalgleish