According to Statistics Canada, the industrial product price index (IPPI) increased 0.2 percent in August after declining 0.3 percent in July. The increase in the IPPI was led by higher prices for motorized and recreational vehicles (+1.0 percent). The main reasons for the increase in this commodity group were higher prices for passenger cars and light trucks (+0.8 percent), motor vehicle engines and motor vehicle parts (+0.8 percent), as well as aircraft (+1.9 percent). The increase in the prices of motorized and recreational vehicles was closely linked to the depreciation of the Canadian dollar relative to the US dollar.
The IPPI rose 2.5 percent during the 12-month period ending in August, after posting a 2.8 percent gain in July. Year-over-year prices for motorized and recreational vehicles were up 3.1 percent, mainly resulting from higher prices for passenger cars and light trucks (+2.7 percent), motor vehicle engines and motor vehicle parts (+2.6 percent) as well as aircraft (+6.8 percent). On a year-over-year basis, prices for motorized and recreational vehicles have been on an upward trend since July 2013.
Meanwhile, Canada’s raw materials price index (RMPI) declined 2.2 percent in August, following a 1.4 percent decrease in July. The August decline in the index was the third in nine months and the largest since November 2013. The decrease in the RMPI was moderated slightly by prices for metal ores, concentrates and scrap, which rose 0.3 percent in August, following a 2.3 percent advance the previous month.
The RMPI declined 0.6 percent during the 12-month period ending in August, after increasing 2.5 percent in July. On a year-over-year basis, it was the first decrease in the index since November 2013. Compared with the same month a year earlier, the decrease in the RMPI was also moderated by metal ores, concentrates and scrap (+1.2 percent), which posted a fourth consecutive year-over-year increase.