According to Statistics Canada, the Industrial Product Price Index (IPPI) rose 0.7 percent in October, following a 0.4 percent increase in September. Of the 21 major commodity groups, 13 were up, 4 were down and 4 were unchanged.
Contributing to the increase in the IPPI was motorized and recreational vehicles (+0.7 percent). Higher prices for passenger cars and light trucks (+0.7 percent), motor vehicle engines and motor vehicle parts (+0.5 percent) and aircraft (+1.1 percent) were the main reasons for the increase in this commodity group. Higher prices for motorized and recreational vehicles were closely linked to the depreciation of the Canadian dollar relative to the US dollar.
In a year-on-year comparison, the IPPI rose 0.8 percent in October, its first year-over-year increase since January 2016 (+1.8 percent).
Meanwhile, the Raw Materials Price Index (RMPI) increased by 3.3 percent in October following no change in September. Of the six major commodity groups, four were up and two were down. Prices for metal ores, concentrates and scrap (-0.6 percent) fell in October.
The RMPI rose 1.5 percent in October compared with the same month last year. The increase was led by higher prices for crude energy products (+8.0 percent), specifically conventional crude oil (+8.3 percent). Also contributing to the increase were higher prices for metal ores, concentrates and scrap (+4.0 percent).