According to Statistics Canada, the Industrial Product Price Index (IPPI) declined 1.2 percent month over month in August. Year over year, the IPPI increased 10.6 percent. Prices of raw materials purchased by manufacturers operating in Canada, as measured by the Raw Materials Price Index (RMPI), fell 4.2 percent on a monthly basis in August and increased 17.6 percent year over year.
Prices for products sold by manufacturers operating in Canada, as measured by the IPPI, declined 1.2 percent month over month in August, a third consecutive monthly decrease. The IPPI increased 10.6 percent year over year. Excluding energy and petroleum products, the IPPI was down 0.3 percent in August.
Prices for primary ferrous metal products were down 2.1 percent in August, mainly due to a drop in prices for basic and semi-finished iron or steel products (-2.2 percent). Year over year, primary ferrous metal products fell 6.0 percent, the first yearly decrease since September 2020 (-2.2 percent). Lower prices for steel are partially due to slowing demand in China amidst a softening property market.
In August, the RMPI fell 4.2 percent month over month, mainly driven by lower prices for crude energy products (-9.6 percent). However, the RMPI was up 17.6 percent compared with August 2021.
Prices for conventional crude oil dropped 8.1 percent in August. Year over year, conventional crude oil prices rose 42.5 percent. Natural gas prices in Canada fell 19.4 percent in August, with increased production, pipeline capacity, and unplanned outages all playing a role in the significant price drop.
Prices for gold, silver, and platinum group metal ores and concentrates (+4.7 percent) were mainly responsible for the monthly increase in metal ores, concentrates and scrap (+2.0 percent). The short-term price movement for gold and silver in August may have been influenced by market participants covering short positions, as well as expectations of softening US inflation.