August 29, 2014 / 12:42 PM / 4 years ago

Cheaper energy helps cut Canada July industrial prices

An oil pump jack pumps oil in a field near Calgary, Alberta, July 21, 2014. Pump jacks are used to pump crude oil out of the ground after an oil well has been drilled. REUTERS/Todd Korol

OTTAWA (Reuters) - Canada’s industrial prices and raw material prices fell in July from June, in both cases because of cheaper energy, according to Statistics Canada data released on Friday.

The Industrial Product Price Index fell by 0.3 percent, versus the median 0.2 percent forecast in a Reuters survey of analysts, though June’s change was revised to a 0.1 percent rise from a 0.1 percent fall. The Raw Materials Price Index was down 1.4 percent, compared with the analysts’ call of 1.3 percent.

The industrial price fall was led by 2.4 percent cheaper energy and petroleum products. Excluding this sector, prices rose 0.2 percent.

Excluding the measurable effect of the rise in the Canadian dollar during the month, industrial prices would have fallen only 0.1 percent instead of 0.3 percent. Some exporters report their prices in U.S. dollars.

A 4.4 percent fall in crude energy products was the main reason for the decline in raw materials prices, with crop products down 1.4 percent. However, animals and animal products were up 3.7 percent.

Reporting by Randall Palmer; Editing by Jeffrey Benkoe

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