Rising Softwood Lumber Prices Contributes to Canadian Industrial Product Price Index Growing 1.3% in October
Industrial product and raw materials price indexes, October 2021
Statistics Canada (StatsCan) is reporting today (11-29-21) that the price of products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI), rose 1.3% month-over-month in October. This follows a 1.2% monthly increase in September. The IPPI was up 16.7% higher year-over-year.
Prices of raw materials purchased by manufacturers operating in Canada, as measured by the Raw Materials Price Index (RMPI), increased 4.8% month-over-month in October and 38.4% year-over-year.
Leading the increase in the IPPI was prices for softwood lumber. Reduced output from Canadian lumber mills, as well as labor shortages at their counterparts south of the border, both played a role in the monthly increase. Softwood lumber posted a 11.9% increase in October, following four consecutive months of declines. Year-over-year softwood lumber prices were -3.6% lower. However, when compared to October 2019, they are 75.7% higher.
According to StatsCan, market indicators indicate that this upward price movement will extend into November, exacerbated in part due to the extreme flooding in the Pacific Northwest.
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