Canada's Industrial Product Price Index (IPPI) rose 0.6% monthly in July as the resumption of the US-Iran conflict in July lifted energy and oil prices, partly offset by lower prices for primary non-ferrous metals and chemicals, according to Statistics Canada on Thursday.
July's IPPI rise was unexpected, as a Bloomberg survey saw a 0.5% monthly consensus drop.
Excluding energy and oil products, the IPPI fell 0.2% monthly, wrote the country's statistical agency in a statement.
The IPPI rose 12.4% year over year, marking its 22nd consecutive monthly increase.
The Raw Materials Price Index (RMPI), meanwhile, fell 2.2% monthly in July, driven primarily by lower prices for crude energy products as crude shipments through the Strait of Hormuz temporarily increased in early July, added StatsCan.
The RMPI also saw declines in metal ores, concentrates and scrap.
RMPI's drop was a tad worse than a 2.0% consensus slip in Bloomberg's survey.
The RMPI was 18.1% higher year over year in July.
Data collected from this survey are used to produce two key measures of price change for the Canadian economy: the IPPI and the RMPI. The IPPI measures price movements for products sold by manufacturers in Canada, and the RMPI measures price movements for raw materials purchased by manufacturers in Canada.
The products reported on this survey will be followed over time, and each month the price movements for these products are aggregated to produce the IPPI and the RMPI. Data for about 6,000 products are used to produce the IPPI and RMPI.
The IPPI and RMPI are used extensively by businesses for contract escalation and industry analysis.