According to Statistics Canada, prices for products manufactured in Canada were down 1.4 percent in June, driven primarily by lower prices for energy and petroleum products. Prices for raw materials purchased by manufacturers operating in Canada decreased 5.9 percent, mainly due to lower prices for crude energy products.
The Industrial Product Price Index (IPPI) declined 1.4 percent in June, the largest decrease since July 2017. The Canadian dollar appreciated 1.3 percent relative to the US dollar from May to June. If the exchange rate had remained constant, the IPPI would have decreased 1.1 percent.
Of the 21 major commodity groups, 16 were down and 5 were up.
Year over year, the IPPI declined 1.7 percent, largely reflecting lower prices for energy and petroleum products (-8.9 percent) and primary non-ferrous metal products (-9.9 percent). Meat, fish, and dairy products (+5.1 percent) and motorized and recreational vehicles (+1.8 percent) moderated the decline.
On a monthly basis, the Raw Materials Price Index (RMPI) was down 5.9 percent in June, a second consecutive month of decline. Of the six major commodity groups, five were down and one was up. Prices for metal ores, concentrates and scrap (-1.2 percent) were also down in June.
Compared with June 2018, the RMPI fell 9.2 percent, primarily due to lower prices for crude energy products (-16.1 percent) and metal ores, concentrates and scrap (-10.2 percent).