As energy prices pulled back, the industrial and raw material price indexes fell in August, Statistics Canada says — yet prices remain inflated on an annual basis.
Last month, industrial prices were down 1.2%, and the prices that manufacturers paid for raw materials dropped by 4.2%, the national statistical agency said.
The decline in industrial prices came as energy and petroleum prices were down 6.5% month over month.
“Increased global production of crude, higher inventories and macroeconomic concerns all played a part in the decreased prices, StatsCan said, adding that the U.S. drawdown from its Strategic Petroleum Reserve also helped ease the pressure on oil prices.
Excluding energy, industrial prices still edged down by 0.3%, as fertilizer prices saw their largest monthly drop on record, falling 19.3%.
“Volatility in the fertilizer market is linked to natural gas prices, as natural gas is the main feedstock for nitrogen-based fertilizers,” StatsCan noted.
Additionally, lumber prices continued their slide in August, and overall metals prices were down too — although prices for precious metals rose in the month.
Amid higher production and the resumption of shipments from the Ukraine, global grain prices also fell in August, StatsCan said.
Despite the easing in prices on a month-over-month basis, they remain elevated on an annual basis. Industrial prices are still up 10.6% year over year, and raw materials were up 17.6%.