The prices of raw materials and industrial products declined in September, according to new data from Statistics Canada — signalling weakness in underlying goods inflation.
The national statistical agency reported that raw materials prices were down 3.1% in September on a month-over-month basis, and declined 8.8% year-over-year, driven by lower energy prices.
Crude energy prices were down 8.5% in September, and synthetic crude oil prices were down 10.1%, StatCan said.
“Concerns over the weak global economy and petroleum future demand put downward pressure on oil prices in September,” it said.
Excluding crude energy products, raw materials prices were up 0.6% in September, led by stronger precious metals prices (gold, silver and platinum), which were up 2.7% on a month-over-month basis and up 28.4% year-over-year.
Additionally, StatCan reported that the industrial products prices were down 0.6% in September, and that they decreased by 0.9% year-over-year.
Declining energy prices led the way here too, as lower crude prices fed through to refined energy products.
Excluding energy and petroleum products, industrial prices were up 0.2% in September, led by precious metals.
“Interest rate cuts from the U.S. Federal Reserve and other central banks, combined with ongoing geopolitical tensions in the Middle East, put upward pressure on precious metals prices,” StatCan said.