ISTANBUL

Input price inflation in Canada accelerated in August to its highest since April 2023, S&P Global said Tuesday in a report.

It was due to higher prices for a variety of inputs, especially plastics, unfavorable exchange rate movements and high shipping costs, said the global data provider.

"In response, manufacturers raised their own charges to the greatest degree since last November," said the report.

The S&P Global Canada Manufacturing Purchasing Managers’ Index (PMI) remained below the crucial 50 neutral level in August for a 16th successive month.

The index, however, increased to 49.5 in August, from 47.8 in July.

"Although the performance of Canada’s manufacturing economy continues to disappoint, slower falls in output and new orders point to a relatively better performance in July than in August, thereby providing some hope of the sector heading towards stabilisation after a prolonged downturn," Paul Smith, an economics director at S&P Global Market Intelligence, said in the report.

"Firms continue to worry about price levels, and in this regard the latest data on inflation remained concerning," he said. "Cost pressures picked up to their highest in nearly a year-and-a-half year, whilst output charge inflation accelerated noticeably."