According to Statistics Canada, the Industrial Product Price Index (IPPI) increased for the third consecutive month in July by 0.7 percent, posting the largest gain since February 2015. Of the 21 commodity groups, 17 were up, 2 were down, and 2 were unchanged.
The main reason for the increase in the IPPI in July was higher prices for motorized and recreational vehicles (+2.5 percent). The gain was led by increases in passenger cars and light trucks (+2.7 percent), motor vehicle engines and motor vehicle parts (+2.0 percent), as well as aircraft (+4.1 percent). Higher prices for motorized and recreational vehicles were closely linked to the depreciation of the Canadian dollar relative to the US dollar.
The Raw Materials Price Index (RMPI) fell 5.9 percent in July, following a 0.2 percent gain in June. Of the six commodity groups, two were up, three were down, and one was unchanged.
The RMPI fell 21.2 percent over the 12-month period ending in July, following a 17.3 percent decline in June. Contributing to the year-over-year decline of the RMPI were lower prices for metal ores, concentrates and scrap (-5.8 percent).