TORONTO (Bloomberg) — Canadian stocks slipped for a third straight day as a report showing US producer prices rose last month by the most since 1974 damped optimism that the Federal Reserve would reduce interest rates.Financial shares including Bank of Nova Scotia paced the decline. Research In Motion Ltd. slid after it missed a deadline to file quarterly results.

Commodity producers including EnCana Corp. and Goldcorp Inc. advanced with oil and bullion prices, limiting the fall in the Standard & Poor’s/TSX Composite Index.

“We’re still bullish on commodities longer-term,” said Paul Taylor, who helps oversee $8.2 billion as chief investment officer of BMO Harris Investment Management Inc. in Toronto. However, “inflation is an issue. It gives the Federal Reserve ammunition to hold off longer on interest-rate cuts than some people expected.”

The S&P/TSX lost 3.66 to 12,781.54, extending its retreat from a record on December 14 to 1.8 percent.

The US producer-price index added two percent in November after falling 1.6 percent the prior month, the Labour Department said. Prices had been expected to climb 0.5 percent, according to the median forecast of economists. The data strengthen the Fed’s case for keeping interest rates unchanged. Speaking in Longview, Texas, Fed Bank of Dallas President Richard Fisher said the risk of “unacceptably high inflation” still outweighs the danger of slowing growth.

Core consumer prices in Canada increased 2.2 percent in November from a year earlier, Statistics Canada said. Economists predicted annual core inflation would advance 2.1 percent.

A gauge of financial shares lost 0.4 percent and was the biggest drag on the S&P/TSX among 10 industry groups. Higher borrowing costs erode the value of bonds owned by banks and insurers, and crimp demand for loans.

Bank of Nova Scotia, Canada’s third-biggest lender by assets, slid 38 cents to C$52.41. Bank of Montreal fell 52 cents to C$68.50.

Research In Motion lost C$4.87, or 3.1 percent, to C$152.30 and was the biggest drag on the S&P/TSX among individual stocks. The maker of the BlackBerry e-mail device missed yesterday’s deadline to file quarterly results.

The company said its fiscal second-quarter report won’t be ready until March 3 because a review of its stock-options accounting is taking longer than expected. Ontario regulators extended until March a ban on trading of its shares by 66 Research In Motion employees and directors.