(Adds details from report)
OTTAWA, Sept 30 Canadian producer prices
unexpectedly fell in August as meat and dairy products saw the
largest decrease in nearly nine years, while lower prices for
energy and petroleum products also weighed, data from Statistics
Canada showed on Friday.
The 0.5 percent decline in producer prices fell well short
of analysts' expectations for an increase of 0.1 percent.
The decline was mainly attributable to a 2.3-percent drop in
prices for meat, fish and dairy products, the category's largest
decline since October 2007. Lower prices for fresh and frozen
pork, beef and veal drove the decrease.
The lower prices coincided with a 25.5 percent annual drop
in the price of cattle and calves in August, the statistics
Prices for energy and petroleum products declined 1.3
percent. Excluding the category, overall producer prices were
down just 0.3 percent.
Raw materials prices also declined 0.7 percent, though the
pace was not as steep as July's 2.7 percent decrease. Of the
index's six major commodity groups, five were lower.
(Reporting by Leah Schnurr; Editing by Nick Zieminski)