According to Statistics Canada, prices of products sold by Canadian manufacturers, as measured by the Industrial Product Price Index (IPPI), increased 0.5 percent in April, mainly due to higher prices for energy and petroleum products. Prices for raw materials purchased by Canadian manufacturers, as measured by the Raw Materials Price Index (RMPI), rose 0.7 percent, primarily due to higher prices for crude energy products.
The IPPI (+0.5 percent) posted its fourth consecutive monthly increase in April, following a 0.9 percent increase in March. Of the 21 major commodity groups, 7 were up, 11 were down and 3 were unchanged.
The increase was almost entirely due to higher prices for energy and petroleum products (+4.5 percent). In particular, prices rose for motor gasoline (+7.2 percent), light oil fuels (+3.4 percent) and diesel fuel (+3.5 percent). Lower production levels by members of the Organization of the Petroleum Exporting Countries (OPEC) continued to pressure supply and contributed to higher prices for petroleum products. Primary ferrous metal products (+0.8 percent) also contributed to the rise.
The IPPI rose 2.4 percent over the 12-month period ending in April, matching the increase in March.
The year-over-year gains in the IPPI in April were largely attributable to higher prices for energy and petroleum products (+15.1 percent). Higher prices for motor gasoline (+16.5 percent), light fuel oils (+18.3 percent), and diesel fuel (+19.2 percent) were largely responsible for the increase in this commodity group. The IPPI excluding energy and petroleum products increased 0.4 percent year over year.
The year-over-year increase in the IPPI was partially offset by lower prices for motorized and recreational vehicles (-4.2 percent), particularly for passenger cars and light trucks (-5.3 percent). Prices for passenger cars and light trucks are closely linked to the US exchange rate. From April 2017 to April 2018, the Canadian dollar appreciated, resulting in a decrease in prices for these products.
The RMPI rose 0.7 percent in April after increasing 2.1 percent in March. Of the six major commodity groups, two were up and four were down.
The increase in the RMPI in April was mainly due to higher prices for crude energy products (+3.2 percent). Conventional crude oil prices rose 3.2 percent, following a 5.6 percent increase the previous month. The RMPI excluding crude energy products decreased by 1.3 percent. Prices for metal ores, concentrates and scrap (-0.6 percent), crop products (-0.6 percent) and non-metallic minerals (-0.4 percent) also decreased.
The RMPI rose 8.9 percent over the 12-month period ending in April, following a 10.0 percent year-over-year increase in March.
The increase in the RMPI in April compared with April 2017 was primarily due to higher prices for crude energy products (+20.0 percent). Conventional crude oil (+20.7 percent) was mainly responsible for the increase in this commodity group. On a year-over-year basis, the RMPI excluding crude energy products rose 0.6 percent. To a lesser extent, higher prices for metal ores, concentrates and scrap (+4.1 percent) also contributed to the year-over-year increase in the RMPI.