Industrial Product Price Index increased in Canada
Staff Writer |
The Industrial Product Price Index (IPPI) rose 0.3% in Canada in November. Higher prices for motorized and recreational vehicles and primary non-ferrous metal products were largely moderated by lower prices for energy and petroleum products.
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The Raw Materials Price Index (RMPI) decreased 2%, mainly due to lower prices for crude energy products.
The rise in the IPPI in November was mainly attributable to higher prices for motorized and recreational vehicles (+1.1%) and primary non-ferrous metal products (+2.3%).
Within motorized and recreational vehicles, price gains were reported for passenger cars and light trucks (+1.0%), motor vehicle engines and motor vehicle parts (+0.7%) as well as aircraft (+1.5%).
Higher prices for motorized and recreational vehicles were closely linked to the depreciation of the Canadian dollar relative to the US dollar.
Price increases for primary non-ferrous metal products were widespread in November, led by higher prices for unwrought copper and copper alloys (+16.7%).
Other unwrought non-ferrous metals and non-ferrous metal alloys (+3.4%) also increased, particularly unwrought lead and lead alloys (+8.3%) as well as unwrought tin and tin alloys (+6.7%). Unwrought aluminum and aluminum alloys rose 3.4%.
Chemicals and chemical products (+0.9%) rose for a third straight month, led by higher prices for petrochemicals (+3.2%) and plastic resins (+2.1%).
Fruit, vegetables, feed and other food products rose 0.4%, primarily due to price increases for intermediate food products (+1.9%), specifically flour and other grain mill products (+2.4%) as well as grain and oilseed products, not elsewhere classified (+0.7%).
Moderating the rise in the IPPI in November were lower prices for energy and petroleum products, which fell 2.2% after rising 5.0% the previous month. Motor gasoline prices fell 5.5%.
Jet fuel (-3.5%), asphalt (other than natural) and asphalt products (-1.3%) and light fuel oils (-0.4%) also recorded price declines. The IPPI excluding energy and petroleum products rose 0.6% in November.
Prices for meat, fish and dairy products (-0.3%) edged down in November. This was almost entirely due to lower prices for fresh and frozen pork (-1.2%) and fresh and frozen poultry of all types (-1.2%).
Some IPPI prices are reported in U.S. dollars and are converted to Canadian dollars using the average monthly exchange rate. Consequently, any change in the value of the Canadian dollar relative to the U.S. dollar will affect the level of the index.
From October to November, the Canadian dollar depreciated 1.4% relative to the US dollar. If the exchange rate had remained constant, the IPPI would have decreased 0.1% instead of rising 0.3%. ■