According to Statistics Canada, prices for products sold by Canadian manufacturers, as measured by the Industrial Product Price Index (IPPI), rose 1.0 percent in October, mainly due to higher prices for motorized and recreational vehicles. Prices for raw materials purchased by Canadian manufacturers, as measured by the Raw Materials Price Index (RMPI), increased 3.8 percent, primarily due to higher prices for crude energy products.
The IPPI increased 1.0 percent in October, following a 0.3 percent decrease in September. Of the 21 major commodity groups, 18 were up, 1 was down and 2 were unchanged.
The growth in the IPPI was largely attributable to higher prices for motorized and recreational vehicles (+1.5 percent). The increase in this product group was mainly the result of higher prices for passenger cars and light trucks (+1.2 percent), motor vehicle engines and motor vehicle parts (+1.5 percent) and aircraft (+2.7 percent). The increase in prices for motorized and recreational vehicles was closely linked to the depreciation of the Canadian dollar relative to the US dollar.
The IPPI rose 1.8 percent over the 12-month period ending in October, after increasing 1.5 percent in September. Primary ferrous metal products (+5.0 percent) contributed to the year-over-year increase in the IPPI, while lower prices for motorized and recreational vehicles (-3.6 percent) moderated the year-over-year gain in the IPPI. The decrease in motorized and recreational vehicles was mainly due to lower prices for passenger cars and light trucks (-4.6 percent) and, to a lesser extent, motor vehicle engines and motor vehicle parts (-2.0 percent).
The RMPI rose 3.8 percent in October, following a 0.2 percent decline the previous month. Of the six major commodity groups, five were up and one was down. Prices for metal ores, concentrates and scrap (+3.7 percent) contributed significantly to the increase in the RMPI.
The RMPI increased 6.6 percent in the 12-month period ending in October, following a 6.2 percent increase in September. Compared with October 2016, the increase in the RMPI in October was primarily due to higher prices for metal ores, concentrates and scrap (+14.5 percent).