According to Statistics Canada, prices for products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI), fell 0.4 percent in October, driven mainly by lower prices for lumber and other wood products. Prices of raw materials purchased by manufacturers operating in Canada, as measured by the Raw Materials Price Index (RMPI), increased 0.5 percent, mostly due to higher prices for animals and animal products and crop products.
In October, the IPPI declined 0.4 percent. Of the 21 major product groups, 6 were down, 12 were up, and 3 were unchanged.
Prices for primary ferrous metal products increased 1.7 percent, mostly due to higher prices for basic and semi-finished iron or steel products (+1.7 percent). This price movement was partially due to the effects of infrastructure stimulus in China, which increased demand for steel as well as iron ore. In October, the Caixin/Markit Purchasing Managers' Index (PMI) for Chinese manufacturing came in at 53.6, its highest level since January 2011. PMI levels above 50 signal an expansion.
Year over year, the IPPI increased 0.7 percent, mostly due to higher prices for lumber and other wood products (+37.6 percent) and a 20.7 percent increase in prices for primary non-ferrous metals. The year-over-year gain was moderated by a 31.2 percent decrease in prices for energy and petroleum products.
In October, the RMPI increased 0.5 percent. Of the six major product groups, five were up and one was down.
Downward influence on the RMPI came from metal ores, concentrates and scraps (-2.3 percent), which includes the price of silver; the price of silver has been volatile, but remained at a high level in October.
Year over year, the RMPI fell 0.3 percent. This decline was mostly driven by a 25.9 percent decrease in prices for crude energy products, which was moderated by a 28.4 percent increase in prices for metal ores, concentrates and scrap.