According to Statistics Canada, the Industrial Product Price Index (IPPI) rose 0.4 percent in December, led mainly by higher prices for energy and petroleum products. The Raw Materials Price Index increased 6.5 percent, mainly due to higher prices for crude energy products.
A decrease in prices for motorized and recreational vehicles (-0.7 percent) moderated the growth of the IPPI in December. The main reason for the decline in this commodity group was lower prices for passenger cars and light trucks (-0.8 percent) and, to a lesser extent, motor vehicle engines and motor vehicle parts (-0.4 percent) as well as aircraft (-0.7 percent). Lower prices of motorized and recreational vehicles were closely linked to the gain in the Canadian dollar relative to the US dollar.
In an annual comparison, the IPPI rose 2.2 percent during the 12-month period ending in December following a 1.5 percent increase in November.
The RMPI rose 17.2 percent during the 12-month period ending in December, following a 4.4 percent gain in November. Metal ores, concentrates and scrap were up from December 2015, with prices rising 17.9 percent following a 16.6 percent increase the previous month.