OTTAWA (Reuters) - Industrial product prices in Canada slipped by 0.1 percent in June from May as the strong Canadian dollar cut the prices for motorized and recreational vehicles, Statistics Canada said on Wednesday.
The drop - the third monthly decline in a row - matched analysts’ expectations. Prices rose by 3.0 percent from June 2013, down from the 3.4 percent year-on-year advance noted in May.
Prices for motorized and recreational vehicles fell by 0.3 percent, largely due to the 0.6 percent increase in the value of the Canadian dollar against the U.S. dollar in June.
There is a significant trade in vehicles between Canada and the United States. Some exporters price their goods in U.S. dollars, which means they get fewer Canadian dollars as the domestic currency strengthens.
Raw material prices rose by 1.1 percent from May, largely as a result of higher prices for crude energy products. The increase was greater than the 0.4 percent month-on-month growth forecast by analysts.
Prices rose by 9.2 percent in the year to June after a 7.7 percent year-on-year jump in May, thanks to a 15.6 percent rise in the prices of crude energy products.
Reporting by David Ljunggren; Editing by Nick Zieminski