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OTTAWA, Nov 28 (Reuters) - Producer prices in Canada increased by 1.0 percent in October from September as a weaker Canadian dollar boosted the cost of motorized and recreational vehicles, Statistics Canada said on Tuesday.
Analysts in a Reuters poll had forecast prices would increase by 0.5 percent from September. Of the 21 major commodity groups, 18 were up, one fell and two remained unchanged.
Prices for motorized and recreational vehicles grew by 1.5 percent thanks largely to a 2.6 percent fall in the value of the Canadian dollar against the greenback in October.
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 0.4 percent had the exchange rate stayed constant.
Raw material prices jumped 3.8 percent, pushed up by higher prices for oil as well as metal ores, concentrates and scrap. Analysts had expected a 2.0 percent gain.
Reporting by David Ljunggren; Editing by Bernadette Baum