Canada june ppi fell 1.4% in June, missing the expected 0.4% decline and ending five straight monthly increases. Meanwhile, Canada’s Raw Materials Price Index dropped 6.9%. That marked its biggest monthly fall since July 2022.
The source said lower commodity costs drove both declines. In particular, energy prices fell sharply after news of a tentative U.S.-Iran agreement eased worries about oil supply disruptions through the Strait of Hormuz. As a result, crude prices dropped, and refined petroleum product prices also moved lower.
Canada June PPI Hit by Energy Costs
The report also showed weaker prices outside the energy sector. Excluding energy, both the Industrial Product Price Index and the Raw Materials Price Index still declined. Therefore, the pullback in producer prices was not limited to oil-linked products.
Precious metals and other non-ferrous metals also weakened in June. However, lumber prices kept rising on firm demand. That made lumber the only area highlighted as a gain.
IPPI and RMPI Measure Different Costs
The Industrial Product Price Index tracks prices Canadian producers receive as goods leave the factory gate. It does not show what consumers pay. In addition, it excludes indirect taxes such as sales taxes and tariffs, along with transport, wholesale, and retail costs.
The Raw Materials Price Index measures prices Canadian manufacturers pay for key raw materials. It includes charges needed to bring a commodity to the establishment gate. Those charges include transport costs, net taxes paid, customs duties, and tariffs paid on imported raw materials.
You can access our other news on Forex markets and global market developments here.
Source: InvestingLive
