According to Statistics Canada, prices for products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI), rose 2.7 percent month over month in May and were up 16.4 percent compared with May 2020.
Prices of raw materials purchased by manufacturers operating in Canada, as measured by the Raw Materials Price Index (RMPI), increased 3.2 percent on a monthly basis in May and were up 40.1 percent year over year.
In May, the IPPI rose 2.7 percent, after increasing 1.8 percent the previous month. This was the strongest monthly gain since February 2021, when prices increased 2.8 percent. Of the 21 major commodity groups, 14 were up, 6 were down, and 1 was unchanged.
Prices for primary ferrous metal products (+2.2 percent) rose from April. Growth in the primary ferrous metal product group was led by higher prices for cold-rolled iron or steel products (+2.9 percent) and iron or steel pipes and tubes (except castings) (+8.8 percent).
Year over year, the IPPI was up 16.4 percent. This was the 10th consecutive advance and the largest increase since January 1980 (+16.7 percent). This gain was driven by higher prices for lumber and other wood products (+119.6 percent) and energy and petroleum products (+76.1 percent).
The RMPI (+3.2 percent) was up for an eighth straight month in May, after posting a 1.0 percent increase in April. Of the six major commodity groups, five were up and one was down.
Widespread price increases for metal ores, concentrates and scrap (+4.7 percent) were the main source of the growth in the RMPI in May. Prices for iron ores and concentrates (+12.1 percent) and nickel ores and concentrates (+4.7 percent) also pushed this group upward, but to a lesser extent.
Year over year, the RMPI rose 40.1 percent, primarily on higher prices for crude energy products (+87.2 percent). Prices for metal ores, concentrates and scrap (+27.0 percent) and crop products (+40.4 percent) also contributed to the advance.