Prices for raw materials and industrial products were both up last month, according to new data from Statistics Canada.
The national statistical agency reported that the Raw Materials Price Index rose by 1.7% in September, pushing the annual rate to 8.4%, led by the metals sector.
“High prices for gold, silver and platinum group metal ores and concentrates drove the increase,” it noted.
At the same time, energy prices declined by 0.9% in September, as crude oil prices fell in anticipation of OPEC production increases and weaker demand expectations.
“Concerns over a slowing U.S. economy, driven by signs of a softening labour market, reinforced market expectations of slowing fuel demand and put downward pressure on crude oil prices in September,” StatCan said.
Excluding crude energy products, raw materials prices were up 3.1% in the month, and were up 18.4% on a year-over-year basis, it noted.
At the same time, prices for products manufactured in Canada were up 0.8% in September, StatCan said. The fourth straight month of higher industrial product prices pushed the rate to 5.5% year-over-year, it noted. Again, gold and silver products drove the increase.
“High prices for precious metals were supported by strong safe-haven investment demand and recent interest rate cuts by the U.S. Federal Reserve,” the report said.
Additionally, gas and diesel prices both rose, despite a decline in crude oil prices, amid low North American inventories, StatCan noted.
The strength in these categories was partly offset by weaker softwood lumber prices, it said.