Canadian Industrial Product and Raw Materials Price Indices for November

On December 23, Statistics Canada (StatCan) released its Industrial Product Price Index (IPPI) and Raw Materials Price Index (RMPI) for November.

Industrial Product Price Index

The IPPI increased 0.6% in November, following a 1.2% rise in October.

StatCan noted that some IPPI product prices are reported in US dollars, meaning changes in the CAD/USD exchange rate can impact the index. From October to November, the Canadian dollar depreciated 1.6% against the US dollar. If October’s exchange rate had been applied to prices reported in US dollars, the IPPI would have risen 0.3% instead of 0.6% in November.

Prices for lumber and other wood products jumped 5.7%, marking the largest monthly increase since March 2022 (7.5%). This category led November’s IPPI growth, driven by a 12.2% surge in softwood lumber prices—the steepest monthly gain since January 2022 (15.1%). The price hike was fueled by increased demand in early November and ongoing supply constraints in the industry, StatCan said.

Year-over-year, the IPPI rose 2.2% in November, up from a 1.1% increase in October.

Raw Materials Price Index

The RMPI declined 0.5% in November after posting a 4.0% increase in October. Lower prices for crude energy products were mainly responsible for the decline. Excluding crude energy products, the RMPI rose 0.6% in November.

The RMPI increased 2.0% on a yearly basis, breaking a three-month streak of declines.