Canadian Industrial Product and Raw Materials Price Indices Decline in April

On Thursday, Statistics Canada (StatCan) released the results of its April Industrial Product and Raw Materials Indices.

Industrial Product Price Index

The Industrial Product Price Index (IPPI) fell 0.8% month-over-month in April, ending a streak of six consecutive monthly increases.

Excluding energy and petroleum products, the IPPI declined 0.5%. However, if the average monthly exchange rate had remained unchanged from March to April, the IPPI excluding energy and petroleum products would have decreased just 0.1% (some products in the IPPI are reported in US dollars).

Lumber and other wood product prices fell 4.4% in April—their largest monthly drop since January 2023, when prices declined 4.8%. Softwood lumber prices were down 11.1%, marking the sharpest month-over-month decrease since June 2022, when they fell 29.4%. This decline was the primary contributor to the monthly drop, as many buyers held off on building inventory due to potential tariffs, putting downward pressure on prices, StatCan said.

Year-over-year, the IPPI rose 2.0%, marking the seventh consecutive annual increase.

Raw Materials Price Index

The Raw Materials Price Index (RMPI) dropped 3.0% month-over-month in April, its largest decline since September 2024 (-3.3%) and the second straight monthly decrease. Excluding crude energy products, the RMPI was down 0.3%.

Year-over-year, the RMPI declined 3.6%, following five consecutive months of annual increases. Excluding crude energy products, however, the RMPI rose 10.1% compared with April 2024.