Canadian Industrial Product and Raw Materials Price Indexes Post Monthly Gains in July

Statistics Canada (StatCan) reported on Friday (8-18-23) that in July, prices of products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI), increased 0.4% month-over-month but declined 2.7% year-over-year.

In July, softwood lumber increased 16.4%—its largest monthly gain since December 2021, when it increased by 26.8%. Year-over-year, softwood lumber prices were 25.2% lower; however, they remain 34.1% higher when compared to the pre-COVID level in January 2020. Multiple factors in July helped to push softwood lumber prices higher. Ongoing wildfires in the Pacific Northwest and the strike at BC ports led to concern about future supply and added uncertainty to softwood lumber markets.

Prices of raw materials purchased by manufacturers operating in Canada, as measured by the Raw Materials Price Index (RMPI), increased 3.5% month-over-month in July. However, year-over-year, they were 11.1% lower. Leading the RMPI higher in July was a 7.7% month-over-month increase for crude energy products.