Statistics Canada said Thursday that industrial producer prices in Canada rose 0.6% in July from June, halting a 1.4% decline recorded in the prior month. The agency identified higher costs for energy and petroleum products, together with gains in primary non-ferrous metals, as the principal contributors to the monthly increase.
Measured year-over-year, industrial product prices were up 12.4% in July, the same annual pace reported for June. When energy and petroleum products are removed from the calculation, the monthly picture changes: prices excluding those items fell 0.2% from June, while remaining 8.8% higher than a year earlier.
Raw material prices posted a 2.2% decline in July, following a 6.7% drop in June. Despite the two consecutive monthly decreases, raw material prices stood 18.1% above their level a year earlier. Looking specifically at raw materials excluding crude energy, prices fell 1.5% on the month and were 16.7% higher on an annual basis.
The Statistics Canada industrial producer price figures arrive after the latest consumer inflation reading for July, which showed headline consumer inflation accelerating to 3.0%. That consumer inflation uptick was attributed largely to higher gasoline prices, while underlying inflation measures were described as relatively stable.
Taken together, the data show a monthly rebound for producer-level prices driven by energy- and metals-related components, an unchanged elevated annual pace for industrial prices, and contrasting monthly movements when energy is excluded. Raw material series continue to display significant year-over-year gains despite recent monthly declines.
Summary
Canada's industrial producer prices rose 0.6% in July versus June, reversing a 1.4% decline the previous month, led by increases in energy, petroleum products and primary non-ferrous metals. On an annual basis, industrial prices were up 12.4%, unchanged from June. Excluding energy and petroleum products, monthly prices declined 0.2% while rising 8.8% year-over-year. Raw material prices fell 2.2% in July after a 6.7% drop in June but remained 18.1% higher than a year earlier. Consumer inflation accelerated to 3.0% in July, driven largely by gasoline, with underlying measures broadly stable.