Skip to main content

The Globe and Mail

Commodity prices hit post-recession high as global demand builds

Oil, steam and natural gas pipelines run through the forest at the Cenovus Foster Creek SAGD oil sands operations near Cold Lake, Alberta in this July 9, 2012 file photo.

TODD KOROL/REUTERS

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.

Story continues below advertisement

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.

Report an error Editorial code of conduct Licensing Options
As of December 20, 2017, we have temporarily removed commenting from our articles. We hope to have this resolved by the end of January 2018. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.