January 4, 2018 / 1:42 PM / in 6 months

Canada Nov producer prices increase by 1.4 percent on higher energy

OTTAWA (Reuters) - Producer prices in Canada increased by 1.4 percent in November, the most in almost three years, thanks mainly to higher prices for energy and energy products, Statistics Canada said on Thursday.

FILE PHOTO: 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

Analysts polled by Reuters had forecast prices would grow by 0.8 percent from October. The advance was the largest since the 1.9 percent recorded in February 2015.

Of the 21 major commodity groups, 16 were up, four fell and one remained unchanged.

Prices for energy and petroleum products strengthened for the fifth straight month, jumping by 6.3 percent on higher demand for gasoline, light fuel oils and diesel fuel. The increase was the largest since May 2016.

Prices for motorized and recreational vehicles grew by 0.7 percent thanks largely to a 1.3 percent fall in the value of the Canadian dollar against the greenback in November.

Many vehicles are priced in U.S. dollars and become more expensive when the Canadian currency weakens. The producer price index would have increased by 1.1 percent had the exchange rate stayed constant.

Raw material prices rose by 5.5 percent, pushed up by higher prices for crude energy products. Analysts had expected a 4.5 percent gain.

Reporting by David Ljunggren; Editing by Bill Trott

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