Industrial product prices in Canada slipped by 0.1 per cent 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 per cent from June 2013, down from the 3.4 per cent year-on-year advance noted in May.
Prices for motorized and recreational vehicles fell by 0.3 per cent, largely due to the 0.6 per cent 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 per cent from May, largely as a result of higher prices for crude energy products. The increase was greater than the 0.4 per cent month-on-month growth forecast by analysts.
Prices rose by 9.2 per cent in the year to June after a 7.7 per cent year-on-year jump in May, thanks to a 15.6 per cent rise in the prices of crude energy products.
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