Commodity index rises slightly (October 17, 1994)

The commodity price index of the Bank of Nova Scotia rose by 0.6% in August, despite seasonally weak metal and agricultural prices.

The all-items index is 11.2% higher than it was at this time last year. Economist Patricia Mohr says commodity prices are expected to continue to strengthen alongside rising industrial activity in the Group of Seven countries.

The metal and mineral sub-index, which eased in August, rebounded in September. The copper price, for example, topped US$1.20 per lb. last month, up from US$1.09 in August. And a 9% drop in London Metal Exchange inventories since June helped boost aluminum to US73 cents per lb. — its highest level since November, 1990.

The metal and mineral sub-index, off 1.4% in August, was 15.7% higher compared with the same period last year.