Canada Raw Material Prices Fall 2.2% in July as New Home Prices Edge Lower

Canadian economic data released Thursday showed continued weakness in raw material and housing prices, adding to signs of subdued price pressures in parts of the economy.

Raw Material Prices Decline 2.2%

Canada's Raw Materials Price Index (RMPI) fell 2.2% month over month in July, a larger decline than the 1.8% expected. However, the decrease was considerably smaller than the previous month's 6.7% drop.

The weaker-than-expected reading points to continued downward pressure on input costs for Canadian producers.

Meanwhile, Canada's New Housing Price Index declined 0.1% in July, compared with expectations for no change and matching the previous month's 0.1% decline.

Overall, the data point to relatively soft upstream and housing-related price pressures. The figures could marginally support expectations for a more accommodative Bank of Canada stance, although broader inflation, employment and economic growth data will remain more important for the policy outlook.