Input prices rose in July, reversing declines in the previous two months, according to new data from Statistics Canada.
The national statistical agency reported that its raw materials price index (RMPI), which tracks the prices of manufacturing inputs, rose by 3.5% in July. And its industrial product price index (IPPI), which tracks the prices of products that are manufactured in Canada, rose by 0.4% in the month.
Both indexes rose after two straight months of declines, StatsCan noted.
StatsCan reported that crude energy prices powered the increase in raw materials prices after curbs by the Organization of the Petroleum Exporting Countries drove oil prices higher.
Crop prices were also up in the month, led by increases in canola and wheat prices.
StatsCan said crops were impacted by drought conditions in Canada and the U.S. in late June and early July, along with the ongoing effects of Russia’s invasion of Ukraine and uncertainty about grain exports from Ukraine.
Energy price increases also boosted the IPPI, and softwood lumber prices were up 16.4%, StatsCan said, noting that ongoing wildfires and a port workers strike combined to boost lumber prices.
Despite the monthly upticks, both readings remained lower on a year-over-year basis. The RMPI was down 11.1% on an annual basis in July, and the IPPI was 2.7% lower.