Canada’s Industrial Product and Raw Materials Price Indexes Both Decline in October
Industrial product and raw materials price indexes, October 2023
Statistics Canada (StatCan) reported on Friday (11-17-23) that prices of products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI), declined 1.0% month-over-month in October, following a 0.4% increase in September. Excluding energy and petroleum products, the IPPI was down 0.3% in October. Year-over-year, the IPPI was down 2.7%.
Specifically looking at the IPPI for softwood lumber, StatCan reports the price of softwood lumber declined 6.4% in October—the largest monthly decrease since March, when it fell 6.7%. Lower lumber prices were partially impacted by ongoing weak seasonal demand. High interest rates also continued to slow real estate activity, StatsCan said.
Prices of raw materials purchased by manufactures operating in Canada, as measured by the Raw Materials Price Index (RMPI), fell 2.5% on a monthly basis in October. Year-over-year, the RMPI was 0.8% lower.
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