Canadian raw material price index rises in September while industrial price index drops
According to Statistics Canada, the Industrial Product Price Index (IPPI) declined 0.3 percent in September, while the Raw Materials Price Index (RMPI) rose 3.0 percent in September.
In September, the IPPI declined 0.3 percent for the second consecutive month. Among the 21 major commodity groups, 15 were up, 4 were down and 2 were unchanged.
Higher prices for motorized and recreational vehicles (+0.6 percent) and primary non-ferrous metal products (+1.3 percent) helped moderate the decline in the IPPI in September. The gain in motorized and recreational vehicles was led by passenger cars and light trucks (+0.7 percent), motor vehicle engines and motor vehicle parts (+0.5 percent) as well as aircraft (+0.8 percent). Higher prices for motorized and recreational vehicles were closely linked to the depreciation of the Canadian dollar relative to the US dollar.
The RMPI rose 3.0 percent in September, after declining 6.8 percent in August. Of the six major commodity groups, three were up and three were down. Higher prices for metal ores, concentrates and scrap (+1.1 percent) contributed to the increase in the RMPI.