Canadian industrial product prices up in May while raw material prices decline

Friday, 28 June 2019 19:45:27 (GMT+3)   |   San Diego
       

According to Statistics Canada, prices for products manufactured in Canada edged up 0.1 percent in May. Higher prices for energy and petroleum products and for motorized and recreational vehicles were largely offset by lower prices for primary non-ferrous metal products. Prices for raw materials purchased by manufacturers operating in Canada were down 2.3 percent, mainly due to lower prices for crude energy products.

On a monthly basis, the Industrial Product Price Index (IPPI) edged up 0.1 percent in May, following a 0.8 percent increase in April. From April to May, the Canadian dollar depreciated 0.6 percent relative to the US dollar. If the exchange rate had remained constant, the IPPI would have edged down 0.1 percent.

Of the 21 major commodity groups, 10 were up, 8 were down and 3 were unchanged.

Year over year, the IPPI rose 0.6 percent, primarily on higher prices for motorized and recreational vehicles (+3.2 percent) and for meat, fish, and dairy products (+5.8 percent). This growth was moderated primarily by lower prices for primary non-ferrous metal products (-6.8 percent) and energy and petroleum products (-2.5 percent).

On a monthly basis, the Raw Materials Price Index (RMPI) was down 2.3 percent in May, after five straight monthly increases. Of the six major commodity groups, four were down and two were up.

The decline in the RMPI was mainly due to lower prices for crude energy products, which decreased 4.2 percent in May, following a 9.5 percent increase the previous month. The downturn in this commodity group was mainly due to lower prices for conventional crude oil (-4.1 percent). The RMPI excluding crude energy products decreased 0.5 percent.

Prices for metal ores, concentrates and scrap (-2.1 percent) also exerted downward pressure on the RMPI in May, after edging up 0.1 percent in April.

Compared with May 2018, the RMPI was down 2.8 percent, following an increase of 3.2 percent in April. This decline was mainly attributable to lower prices for crude energy products (-6.3 percent).


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