OTTAWA (Reuters) - Canadian producer prices fell by an unexpected 0.3% in July on widespread commodity price declines led by slumping pork prices, Statistics Canada data showed on Friday.
Analysts in a Reuters poll had predicted an increase of 0.3% in July. Of the 21 major commodity groups tracked by Statistics Canada, 15 fell, four rose and two were unchanged.
Canada’s ongoing trade dispute with China, which has seen Canadian exports of pork, beef and canola seed halted, contributed to the drop in prices for meat, Statistics Canada said.
Pork prices dropped 7.1%, the largest decline seen since September 2017, while prices for fresh and frozen beef declined by 3.3%.
Motorized and recreational vehicle prices were also down in July, dropping 0.8%, thanks to the strength of the Canadian dollar relative to the U.S. dollar.
Raw materials prices rose by 1.2% mainly on higher prices for crude energy products. Statistics Canada revised its June figure down to a 6.1% decrease from an initial decline of 5.9%
Reporting by Kelsey Johnson; Editing by Dale Smith and Chizu Nomiyama