According to Statistics Canada, the Industrial Product Price Index (IPPI) declined 0.2 percent in December, mainly as a result of lower prices for energy and petroleum products. The Raw Materials Price Index (RMPI) fell 5.0 percent, led by lower prices for crude energy products.
The IPPI (-0.2 percent) fell for the fifth consecutive month in December and has declined 1.7 percent since July 2015. Among the 21 major commodity groups, 5 were down and 16 were up.
Prices for primary ferrous metal products (-1.8 percent) also declined in December, led by lower prices for iron and steel basic shapes (-3.0 percent).
Largely moderating the decline in the IPPI were higher prices for motorized and recreational vehicles (+2.1 percent), specifically passenger cars and light trucks (+2.1 percent), motor vehicle engines and motor vehicle parts (+1.6 percent) as well as aircraft (+3.2 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 declined 5.0 percent in December, after falling 4.1 percent in November. Of the six major commodity groups, three were up and three were down.