Canadian Industrial Product and Raw Materials Price Indexes for April

On Tuesday, Statistics Canada (StatCan) reported that prices of products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI), increased 1.5% month-over-month and 1.4% year-over-year in April.

Lumber and other wood products had the largest downward impact on the IPPI’s month-over-month movement in April, falling 1.3%. Softwood lumber was the primary contributor, declining 3.4% following five consecutive months of increases.

Demand for lumber was reportedly weak in April, as economic uncertainty and weather conditions weighed on buyers. Data indicate that housing construction recently slowed, helping push down lumber prices. The seasonally adjusted rate of housing starts in the US increased 5.7% on a month-over-month basis in April, but this followed a large decline in March (16.8%). In Canada, seasonally adjusted housing starts fell 0.8% in April and 6.8% in March, according to the Canada Mortgage and Housing Corporation.

StatCan also reported that prices of raw materials purchased by manufacturers operating in Canada, as measured by the Raw Materials Price Index (RMPI), rose 5.5% on a monthly basis in April and were 3.1% higher when compared to April 2023.

These are the two largest month-over-month increases in the RMPI since March 2022 when it increased 11.8%. Excluding crude energy products, the RMPI was up 5.3%.