Canadian Industrial Product and Raw Materials Price Indexes Both Decline in February

Statistics Canada (StatCan) reported on Friday (3-17-23) that prices of products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI), declined 0.8% month-over-month in February, following a 0.3% increase in January. Year-over-year, the IPPI was up 1.4%.

StatCan is reporting that the prices for softwood lumber rose 7.4% month-over-month in February, after declining for six consecutive months. In February, the price of softwood lumber was 27.7% higher when compared with January 2020, prior to the COVID-19 pandemic. The monthly price increase was mostly attributed to curtailed production in British Columbia, amidst a backdrop of increasing interest rates and slowing housing starts in the US.

Prices of raw materials purchased by manufactures operating in Canada, as measured by the Raw Materials Price Index (RMPI), declined 0.4% on a monthly basis in February and were down 5.2% year-over-year.

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