Canadian Industrial Product Price Index and Raw Materials Price Index Both Decline Month-Over-Month in November

Statistics Canada (StatCan) on Monday (12-19-22) reported that prices of products manufactured in Canada, as measured by the Industrial Product Price Index (IPP), fell 0.4% month-over-month in November but remained 9.7% higher than in November 2021. Energy and petroleum products, which were down 2.7%, led the decrease in the IPPI. However, compared with November 2021, prices were up 40.8% year-over-year.

Also helping with the decline in the IPPI was the price of softwood lumber, which fell 2.8% month-over-month in November. The November decline marks the fourth consecutive month of softwood lumber declines. Year-over-year, softwood lumber prices were down 11.3%, the largest decline since June when they fell 38.8% month-over-month. Lower lumber prices were partially attributable to a cooling housing market in the US and Canada amidst rising interest rates.

Prices of raw materials purchased by manufacturers operating in Canada, as measured by the Raw Materials Price Index (RMPI), declined 0.8% month-over-month in November 2022 but were 8.0% higher year-over-year.

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