By Ketki Saxena
Investing.com -- The prices for Canadian Industrial Products and Raw Materials declined in July, Statistics Canada reported, driven lower mainly by easing prices for energy and petroleum products.
Canada's industrial product price index fell 2.1% in July from the previous month, largely due to lower prices and demand for crude oil and reduced refiner margins, which dropped after posting six consecutive monthly increases.
In June, industrial producer prices had eased 1.1% from the previous month. On a 12-month basis, the index is still up 11.9%.
The industrial producer price index measures the price manufacturers in Canada receive for goods leaving the plant. Unlike the consumer price index, it does not reflect the final prices consumers pay for goods on store shelves.
Prices for raw materials, which tracks prices paid by Canadian manufacturers for their input materials, posted a substantial decline, falling 7.4% in July - the largest monthly decline since April 2020.
Easing raw material prices were also driven by energy as global demand and prices declined, while oil inventories grew. Lower prices were also seen for metal ores, concentrates and scrap as well as for crops.
In June, the Index had edged down only 0.1% in June from May. The index is still 19.1% higher compared with July 2021.