According to Statistics Canada, prices for products manufactured in Canada were down 0.3 percent in July. Widespread commodity price declines, led by pork, were partially offset by higher prices for motor gasoline and precious metals. Prices for raw materials purchased by manufacturers operating in Canada were up 1.2 percent, mainly as a result of higher crude energy products prices.
In July, the Industrial Product Price Index (IPPI) was down 0.3 percent, following a 1.4 percent decline the previous month. Excluding energy and petroleum products, the IPPI decreased 0.5 percent.
Motorized and recreational vehicles prices (-0.8 percent) were also down in July. Lower prices for these products are closely linked to the appreciation of the Canadian dollar relative to the US dollar.
Year over year, the IPPI declined 1.7 percent, largely as a result of lower prices for energy and petroleum products (-7.8 percent).
Following two months of decline, the Raw Materials Price Index (RMPI) rose 1.2 percent in July, largely on the strength of higher prices for conventional crude oil (+4.3 percent). Of the six major commodity groups, three were up and three were down.
The RMPI excluding crude energy products was down 1.0 percent, mainly reflecting lower prices for animals and animal products (-2.7 percent), particularly hogs (-9.6 percent).
Compared with July 2018, the RMPI fell 9.0 percent, driven mainly by lower prices for crude energy products (-15.9 percent).