Canada’s Producer Price Index and Raw Materials Price Index Decline Month-Over-Month in December

Statistics Canada (StatCan) on Wednesday (1-18-23) reported that in December 2022, the Industrial Product Price Index (IPPI) declined 1.1% month-over-month but was up 7.6% year-over-year. The Raw Materials Price Index (RMPI) fell 3.1% on a month-over-month basis in December but posted a 7.5% year-over-year gain.

Leading the monthly decrease in the IPPI and RMPI was the price for energy and petroleum which declined 9.8%, falling for the second consecutive month in December. For comparison, in December 2021, prices were up 31.8%.

Prices for softwood lumber fell 8.9% in December, posting a fifth consecutive monthly decline. On a yearly basis, softwood lumber prices were down 40.2% in December—the largest year-over-year decline on record since the start of the series in January 1956. StatsCan indicates that the decline was mainly due a slowing in the US residential housing market, which coincided with higher mortgage interest rates in the US.

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