Canadian Industrial Product and Raw Materials Price Indices Rise in January

On Thursday, Statistics Canada (StatCan) released its Industrial Products Price Index (IPPI) and Raw Materials Price Index (RMPI) for January.

Industrial Products Price Index

The IPPI rose 1.6% month-over-month in January, the fourth straight monthly increase and the largest gain since a 1.6% increase in April 2024. The increase was driven by higher prices for energy and petroleum products. Excluding energy and petroleum products, the IPPI rose 0.9% on a monthly basis.

Year-over-year, the IPPI increased 5.8%, reaching its highest level over the previous 12 months. The annual movement was also influenced by a base period effect. In January 2024, the IPPI was at its lowest level of 2024, as concerns about oil demand and high levels of supply led to relatively low prices for energy and petroleum products.

The IPPI’s year-over-year increase in January was the fourth consecutive increase and the largest since posting a 7.5% increase in December 2022.

Raw Materials Price Index

In January, the RMPI rose 3.7% on a monthly basis, mainly due to higher prices for crude energy products. Excluding crude energy products, the RMPI increased 1.6%.

Year-over-year, the RMPI was up 11.8%, the third consecutive year-over-year increase and the largest growth since posting a 12.6% increase in September 2022. The annual movement was partially influenced by a base period effect, as the index declined 6.5% year-over-year in January 2024.