Aerial drone view of petrol industrial zone or oil refinery in Yaroslavl, Russia during sunset time.

Ahead of next week’s closely watched consumer inflation data, Statistics Canada reported that its industrial product and raw materials price indexes both declined last month.

The national statistical agency reported that raw materials prices dropped 2.5% in October, as measured by its Raw Materials Price Index.

Lower energy prices led the way as prices for crude energy products decreased by 4.7% in October.

StatsCan said that, despite ongoing geopolitical instability in the Middle East, “falling demand and concerns about future demand” ultimately pushed prices lower for the month.

Base metal and precious metal prices were also down last month, it noted, as were certain agricultural prices.

On a year-over-year basis, the index was down 0.8%. This was also driven by softer energy prices, along with weakness in wheat, canola and nickel prices, StatsCan said.

Alongside the decline in raw materials prices, StatsCan’s Industrial Product Price Index (IPPI), which measures prices for products manufactured in Canada, also fell by 1.0% in October, and was down 2.7% on a year-over-year basis.

Weaker energy prices also drove the decline in the IPPI, as did a 6.4% drop in softwood lumber prices in October.

“Lumber prices were partially impacted by ongoing weak seasonal demand. High interest rates also continued to dampen real estate activities,” StatsCan said.

The input price data represents a downside surprise, as analyst expectations called for a flat IPPI reading for October.

Next week, consumer inflation for October is on tap, with analysts expecting to see a slowing in headline CPI from 3.7% in September to 3.3% in October — a development that will feature strongly in the market’s view on the trajectory for monetary policy in the months ahead.