According to Statistics Canada, the Industrial Product Price Index (IPPI) declined 0.4 percent in January, while the Raw Materials Price Index (RMPI) decreased 7.7 percent.
Of the 18 commodity groups that posted increases in January, motorized and recreational vehicles (+3.5 percent) had the largest moderating effect on the IPPI decline. The increase in prices was mainly due to passenger cars and light trucks (+3.8 percent), motor vehicle engines and motor vehicle parts (+2.4 percent) as well as aircraft (+5.6 percent). Higher prices for motorized and recreational vehicles were closely linked to the depreciation of the Canadian dollar relative to the US dollar.
The IPPI fell 2.2 percent over the 12-month period ending in January, after decreasing 0.4 percent in December. The 12-month decline of the IPPI was also moderated mainly by prices for motorized and recreational vehicles (+7.6 percent), essentially passenger cars and light trucks (+7.5 percent), motor vehicle engines and motor vehicle parts (+6.4 percent) as well as aircraft (+12.6 percent).
The RMPI (-7.7 percent) fell for the seventh consecutive month in January, after declining 7.5 percent in December 2014. Of the six major commodity groups, four were up and two were down. Slightly moderating the decline in the RMPI were higher prices for metal ores, concentrates and scrap (+1.0 percent).
The RMPI declined 21.8 percent over the 12-month period ending in January, after decreasing 13.0 percent in December. Year over year, this was the largest decline in the index since September 2009. Metal ores, concentrates and scrap also put downward pressure on the RMPI year over year, with prices falling 2.2 percent following a 0.8 percent decline in December.