Canada May industrial prices rise as coronavirus closures drive up meat costs: flash estimate

OTTAWA (Reuters) - Producer prices in Canada gained 1.2 percent in May from April, the first increase recorded this year, led by strong gains in meat prices caused as COVID-19 closed down packing plants, according to a flash estimate on Friday.

Overall prices for meat products rose 12.6%, but within that category fresh and frozen pork posted its largest every monthly gain of 30.4%, Statistics Canada said. Producer prices fell 4.8%from a year earlier.

“Meat plants across Canada and the United States were affected by COVID-19, resulting in closures or reduced

production capacity. This led to reduced market supply in May, and therefore higher prices,” Statscan said.

Reporting by Steve Scherer; Editing by Chizu Nomiyama