Canadian Industrial Product Price Index Edges Higher, but Raw Materials Price Index Inches Lower in January
ndustrial product and raw materials price indexes, January 2023
Statistics Canada (StatCan) reported Friday (2-17-23) that following two consecutive months of declines, the Industrial Product Price Index (IPPI) increased 0.4% month-over-month and 5.4% year-over-year in January. However, the Raw Materials Price Index (RMPI) suffered its third consecutive monthly decline, moving 0.1% lower month-over-month and only increasing 1.2% year-over-year.
In January, the price of softwood lumber fell 9.1%, marking its sixth consecutive monthly decline. On a yearly basis, the price of softwood lumber fell 53.0%, the largest year-over-year drop for the series on record. StatCan noted that the downward trend in softwood lumber occurred amidst a slowing housing market and the ongoing higher cost of borrowing money. StatCan pointed to the US Federal Reserve Board’s announcement of a 25 basis-point rate hike in February, putting further downward pressure on US housing demand—the primary market for Canadian softwood lumber.
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