Canada industrial prices up 0.5% in April
8:55 AM, E.T. | May 31, 2011Economy
Canadian industrial product prices grew more slowly than expected in April while Japan's nuclear disaster helped moderate an otherwise healthy increase in raw material prices, Statistics Canada data indicated Tuesday.
Industrial product prices grew by 0.5 percent from March, less than the 0.7 percent forecast by market operators.
One reason for the below-par performance was the strong Canadian dollar, which helps depress the value of exports to the United States. Without the impact of the exchange rate, product prices would have grown by 1.0 percent in April.
April's gain was driven by a 4.2 percent increase in prices for petroleum and coal products—a sector which had risen by 8.2 percent in March over February—and a 1.9 percent rise in primary metals.
Raw materials cost 6.8 percent more in April than they did in March, well above the 3.2 percent increase expected by market traders, and the highest month-on-month advance since the 12.6 percent jump reported in March 2009.
Crude oil prices were up by 14.1 percent over the previous month while radioactive concentrates plunged by 17.3 percent in the wake of the Japanese calamity, which prompted some nations to reconsider their plans for nuclear power.