Canadian Industrial Product and Raw Materials Price Indices Decline in September

On Tuesday, Statistics Canada (StatCan) reported that prices of products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI), fell 0.6% month-over-month in September and were down 0.9% year-over-year. Excluding energy and petroleum products, the IPPI rose 0.2%.

The IPPI’s monthly decline in September was moderated by higher prices for multiple product groups, including primary non-ferrous metal products and lumber and other wood products. Prices for lumber and other wood products rose 1.2%, increasing for the second consecutive month. Higher prices for softwood lumber, up 3.2%, led the gain. Sawmills’ curtailed activities and closures in the British Columbia interior region due to high operating costs caused a negative supply shock which contributed to this price increase, StatCan said.

The IPPI was 0.9% lower in September compared with one year earlier, the first year-over-year decrease since March, when it was down 0.4%.

StatCan also reported that the Raw Materials Price Index (RMPI) declined 3.1% month-over-month in September, following a 3.0% decline in August. This was the largest month-over-month decline in the RMPI since December 2023, when it fell 4.9%. Excluding crude energy products, the RMPI was up 0.6%.

The RMPI decreased 8.8% year-over-year in September—the largest decrease since July 2023, when it declined 10.9%. The largest contributors to the decrease were conventional crude oil, down 21.4%; synthetic crude oil, down 28.4%; and canola oil, down 23.0%.