Canadian Industrial Product and Raw Materials Price Indices for October

On Thursday, Statistics Canada (StatCan) reported that the prices of products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI), and the prices of raw materials purchased by manufacturers operating in Canada, as measured by the Raw Materials Prince Index (RMPI), both increased in October.

Industrial Price Index

The IPPI was up 1.2% in October, after two consecutive declines. This was the largest monthly growth for the IPPI since April, when it posted a 1.6% gain.

Prices for lumber and other wood products increased 1.3%, marking the third consecutive monthly gain. The increase is mainly due to higher prices for softwood lumber, up 2.3%. StatCan said sawmill curtailments and closures in the British Columbia Interior region and Quebec caused a reduction in supply that contributed to the price increase.

Year-over-year, the IPPI was 1.1% higher in October, following a 1.0% decline in the previous month. The largest upward contributor to the year-over-year increase was unwrought gold, silver, and platinum group metals and their alloys, up 39.8%. Other noteworthy upward contributors included unwrought aluminum and aluminum alloys, up 30.2%, and unwrought copper and copper alloys, up 20.4%.

Raw Materials Price Index

The RMPI rose 3.8% in October, after two consecutive declines. Excluding crude energy products, the Index was up 3.1%.

Prices for crude energy products were up 5.0% and led the Index’s monthly increase. This was the largest monthly increase for crude energy products since April, when it posted a 5.8% increase.

The RMPI fell 2.8% year-over-year, marking the third consecutive year-over-year decrease. The largest downward contributors to the decrease were conventional crude oil, down 14.6%, and synthetic crude oil, down 20.6% (despite prices for both increasing on a monthly basis).