Prices for manufactured goods at the factory gate rose sharply in July as prices for primary metal and petroleum products increased, reported Statistics Canada.

Raw materials prices also increased in July, the result of higher prices for crude oil and non-ferrous metals, it added.

Prices charged by manufacturers, as measured by the Industrial Product Price Index, were up 1.7% in July following a 0.4% decline in June. Higher prices for primary metal products and petroleum products were the major contributors to this monthly increase.

The 12-month change in the IPPI was an increase of 4.3%, almost double the year-over-year increase of 2.2% in June. Upward pressure came mainly from higher prices for primary metal products and petroleum products.

The Raw Materials Price Index was up 5.2% in July from June following a 2.3% decrease in June. The increase was due primarily to higher prices for crude oil and non-ferrous metals.

Compared to July of last year, raw materials cost factories 19% more, up significantly from the year-over-year change of 14.8% in June.

The IPPI stood at 115.6 in July, up from 113.7 in June. The RMPI reached 175.1, up from a revised level of 166.4 in June.