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Canada Factory Price Index Rises 0.3% in June on Motor Vehicles

Prices paid to Canadian manufacturers rose for the first time in four months in June, as a weakening currency boosted prices for motor vehicles. Raw material costs rose for a second month.

The industrial product price index increased 0.3 percent, Statistics Canada said today from Ottawa. Economists predicted a 0.2 percent gain, according to the median estimate in a Bloomberg survey with 9 responses. Motor vehicle prices rose 1 percent during the month, due in part to a 1.1 percent decline in the value of the Canadian dollar, the statistics agency said.

The raw-materials price index rose 0.3 percent. The index was forecast to rise 0.5 percent according to the median estimate in a separate survey that had seven responses.

For the 12 months ending in June, industrial prices were up 0.6 percent while raw-materials costs gained 4 percent, suggesting factory profit margins have shrunk in the past year.

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