Producer Prices Soar in Oct.: StatsCan
Wholesale inflation in Canada increased by 1% in October from September as a weaker Canadian dollar boosted the cost of motorized and recreational vehicles.
Statistics Canada's Producer Price Index (PPI), released Tuesday, surpassed analyst predictions of a 0.5% improvement from September. Of the agency's 21 major commodity groups, 18 were up, one fell and two remained unchanged.
Prices for motorized and recreational vehicles grew by 1.5% thanks largely to a 2.6% fall in the value of the Canadian dollar against the greenback in October.
The nation's number crunchers add many vehicles are priced in U.S. dollars and become more expensive when the Canadian currency weakens. The PPI would have increased by 0.4% had the exchange rate stayed constant.
Raw material prices jumped 3.8%, pushed up by higher prices for oil as well as metal ores, concentrates and scrap. Analysts had expected a 2% gain