Canada’s Industrial Products Price Index Increased 1.5% in December Led by Wood Products, Energy and Petroleum

According to Statistics Canada (StatCan) prices for products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI) rose 1.5% in December, following a -0.5% decrease in November. This was the strongest monthly gain since November 2017 (+1.6%). The increases were led by higher prices for energy and petroleum products, lumber and other wood products. In the lumber and other wood products group, softwood lumber prices (+20.1%) rebounded after falling -15.9% in November and -9.0% in October. Unusually high demand for softwood lumber at this time of year for construction and renovation, coupled with low production capacity over the course of the year, are mostly behind the rise in prices. Compared with December 2019, housing starts in Canada and the United States rose 16.1% and 5.2%, respectively.