OTTAWA (Reuters) - Canadian producer prices fell by 0.4 percent in September from August as higher crude oil supplies in North America cut prices for refined energy and petroleum products, Statistics Canada said on Wednesday.
Market analysts had expected a 0.1 percent decline after the revised 0.3 gain in July. Prices rose by 2.5 percent from September 2013, down from the 2.6 percent year-on-year gain in August.
Prices for energy and petroleum products dropped by 1.7 percent amid a glut of crude oil supplies. Motor gasoline prices fell by 1.2 percent while light fuel oils were off 3.0 percent and diesel fuel declined by 2.2 percent.
Prices for primary non-ferrous metal products dropped by 1.9 percent while prices for motorized and recreational vehicles rose by 0.6 percent.
Abundant supply and slow growth in world oil helped drag down raw material prices by 1.8 percent in September from August, more than the 0.9 percent retreat forecast by analysts.
Crude energy product prices fell by 1.9 percent from August and by 5.4 percent from September 2013, the largest year-on-year decline since the 5.9 percent plunge seen in January 2013.
Overall, raw material prices were 0.9 percent lower than a year earlier.
Reporting by David Ljunggren; Editing by Nick Zieminski