OTTAWA (Reuters) - Canadian producer prices saw their largest drop in over a year in February, pulled down by cheaper energy and petroleum products, as well as lower prices for vehicles, data from Statistics Canada showed on Tuesday.
Prices fell 1.1 percent, far exceeding economists’ expectations for a decline of 0.2 percent. It was the largest decline since December 2014.
The decrease was driven by a 4.1 percent drop in prices for energy and petroleum products. February’s recovery of the Canadian dollar against its U.S. counterpart helped to drive prices for vehicles down 1.8 percent.
Overall, the decline in prices was broad-based, with 15 of the 21 major commodity groups lower.
The decline in the cost of crude energy products also sent raw materials prices down 2.6 percent, surpassing expectations for a drop of 0.9 percent. A decrease in the cost of crop products, such as canola and wheat, also weighed on raw materials prices.
Reporting by Leah Schnurr; Editing by Chizu Nomiyama