Higher dollar keeps lid on wholesale inflation

The higherdollarmasked an increase in wholesale prices for Canadian exporters in August, Statistics Canada reported on Wednesday.

The industrial product price index gained 0.5 per cent and the raw materials price index was up 3.7 per cent.

Statistics Canada said the gain was due mainly to a 6.2 per cent increase in petroleum and coal prices and by a 4.9 per cent rise in primary metal prices. The increase in the industrial index followed a drop of 0.6 per cent the month earlier.

The Canadiandollar rose by 3.1 per centin August againstthe U.S. currency, andCanadian businesses that paid for inputs priced in U.S. dollars gained an advantage over previous periods.If the exchange rate had not changed, Statistics Canada said,the IPPI would have risen 1.3 per cent.

Comparedwith a year ago, the industrial index declined 6.7 per cent while raw material prices were down 26.4 per cent.