Commodity prices in Canada are at a post-recession high, according to new research by the National Bank of Canada.
The country’s Western provinces in particular stand to gain from improved profits as global demand picks up and the U.S. economy continues to rebound, National Bank economist Stéfane Marion says in a research note published Monday.
“We calculate that the Bank of Canada’s commodity price index (BCPI) rose to a post-recession high in [the second quarter] when translated into Canadian dollars,” he said.
The index measures the spot or transaction prices in U.S. dollars of 24 commodities produced in Canada and sold in world markets.
The increase is not limited to energy, said Mr. Marion.
“The price of non-energy commodities produced in Canada and sold in world markets currently stands at a new record high so far in Q2 2014,” he said.
The data spell good news for job creation and consumer activity in Western Canada.
“Taken together, these developments are likely to spur consumption and stronger wage increases in the Western provinces where inflation is already averaging 2.3%,” said Mr. Marion.