UPDATE 2-Canada Feb raw material prices unexpectedly higher

* Crude oil pushes up raw material prices in February

* Industrial product prices unchanged despite C$ dip
(Explains currency effect, paragraph 5)

OTTAWA, March 30 (BestGrowthStock) – Canadian raw material prices
unexpectedly rose in February mainly because of more expensive
crude oil, while producer prices remained unchanged as
expected, according to Statistics Canada data on Tuesday.

Analysts surveyed by Reuters had forecast a 1.0 percent
fall in raw material prices, but they rose 0.4 percent on the
month. Excluding mineral fuels, prices would have fallen 1.1
percent. On an annual basis, prices were 27.8 percent higher.

Industrial product prices had no change after three
straight monthly rises and were 0.6 percent lower than a year
earlier, Statscan said.

On a monthly basis, the relative weakness of the Canadian
dollar boosted the prices of those industrial products, notably
in the auto sector, which are priced in U.S. dollars.

The Canadian industrial products price index is based in
Canadian dollars, and for those products which are priced in
the U.S. currency, a rise in the U.S. dollar has the effect of
boosting the Canadian price of those products.

If the exchange rate had remained unchanged, producer
prices would have fallen 0.3 percent.

“The effect of the Canadian dollar’s depreciation against
the U.S. currency was offset by lower prices for primary metal
products (-2.1 percent) and petroleum and coal products (-1.2
percent),” the federal agency said.
Stock Market Today

(Reporting by Randall Palmer; Editing by James Dalgleish)

UPDATE 2-Canada Feb raw material prices unexpectedly higher