According to a report released Monday by Statistics Canada, the Canadian Industrial Product Price Index (IPPI) rose 1.4 percent in January, after advancing 0.6 percent in December. This was the third consecutive increase and the largest gain since February 2013. The gains were widespread, as 19 of 21 major commodity groups were up.
The growth of the IPPI was mainly attributable to higher prices for energy and petroleum products, while motorized and recreational vehicles also made a significant contribution to the increase in the IPPI, posting a 1.7 percent advance. Higher prices for passenger cars and light trucks (+1.6 percent) were the main reason for the increase in this commodity group. The advance of the motorized and recreational vehicles index was closely linked to the depreciation of the Canadian dollar relative to the US dollar.
The Raw Materials Price Index (RMPI), meanwhile, rose 1.5 percent in January (excluding crude energy products). Metal ores, concentrates and scrap (+2.0 percent) also contributed to the advance of the RMPI in January, posting the largest gain since August 2013.