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Tuesday, May 30, 2006 Industrial product and raw materials price indexes
Monthly prices for manufactured goods at the factory gate were up in April, as prices for petroleum and primary metal products increased. Raw materials prices also increased in April, the result of higher prices for crude oil and non-ferrous metals. Prices charged by manufacturers, as measured by the Industrial Product Price Index (IPPI), were up 1.3% from March to April. Higher prices for petroleum products and primary metal products were the major contributors to this monthly increase. The 12-month change in the IPPI was 2.2%, up from March's year-over-year increase of 1.2%. Higher prices for petroleum products, primary metal products and chemical products were the major contributors to this annual increase.
The Raw Materials Price Index (RMPI) was up 5.7% from March to April, following an increase of 0.9% in March and due primarily to higher prices for crude oil and non-ferrous metals. Compared to April of last year, raw materials cost factories 12.9% more, up significantly from the year-over-year change of 5.3% in March. In April, the IPPI (1997=100) stood at 113.9, up from March's revised level of 112.4. The RMPI (1997=100) reached 160.9, up from a revised level of 152.2 in March. IPPI: Prices for petroleum products and primary metals are upOn a month-over-month basis, manufacturers' prices were up 1.3%, mainly due to higher prices for gasoline and fuel oil as well as primary metal products. Petroleum and coal products prices increased 9.6% compared to March. If petroleum and coal product prices had been excluded, the IPPI would have increased 0.5% rather than 1.3%. Prices for primary metal products rose 6.4%, the largest increase observed since the 5.6% rise in February 2004. Strong demand, low inventories and concerns about supply pushed up prices for primary copper products (+25.0%), refined zinc products (+30.7%), primary nickel products (+20.0%), silver products (+18.8%) as well as refined gold products (+7.4%). Prices for pulp and paper products, non-metallic mineral products as well as metal fabricated products also increased in April but to a much lesser degree. However, prices for motor vehicles and other transport equipment were down 0.6% from March, due primarily to a stronger Canadian dollar. Lumber and other wood products decreased 1.0% from March to April, mainly due to an ample supply of softwood lumber. Prices for chemical products declined 1.1% as lower prices were recorded for synthetic resins. Prices for meat, fish and dairy products, fruit, vegetable and feed products as well as machinery and equipment also declined in April. IPPI: Petroleum and primary metal products continue to be the major factors in the 12-month changeOn a 12-month basis, the IPPI was up 2.2% in April, an increase from the year-over-year change of 1.2% in March. Prices for petroleum and coal products rose 19.5% from April 2005, up from March's increase of 11.8%. If petroleum and coal product prices had been excluded, the IPPI would have increased 0.5%, rather than 2.2% from a year ago. Prices for primary metal products were up 12.2% compared to a year ago. Significantly high prices on a year-over-year basis were observed for copper products (+65.0%) and refined zinc products (+124.5%). Prices for aluminum (+12.4%), silver (+56.6%) and gold (+31.0%) products also contributed to the annual increase. Chemical products increased 2.3%, due to higher prices for inorganic industrial chemicals. Prices were also higher than one year ago for rubber, leather and plastic fabricated products, non-metallic mineral products, fruit, vegetable and feed products, tobacco products and furniture and fixtures. On the other hand, lumber and other wood products declined 6.2% from April 2005 to April 2006, as year-over-year decreases were recorded for softwood lumber (-9.4%), particleboard (-9.9%) and pulpwood chips (-8.0%). Motor vehicles and other transport equipment prices were down 5.1% from a year ago, mainly as a result of a stronger Canadian dollar. Prices for pulp and paper products, meat, fish and dairy products as well as electrical and communication products were also down from a year ago. RMPI: Crude oil and non-ferrous metals push up raw materials pricesOn a monthly basis, raw materials prices rose 5.7% in April, following an increase of 0.9% in March. Mineral fuels increased 6.8% compared to March. Prices for crude oil were up by 10.4%, mainly due to increased concerns over supply. Non-ferrous metals prices rose 15.6%, the largest monthly increase since the peak of 9.6% reached in February 2004. High demand, especially from China, and limited supply pushed up prices for zinc (+31.2%), copper (+25.4%), nickel (+19.9%), silver (+18.8%) and gold (+7.4%). Prices for ferrous materials, vegetable products and wood products also increased in April but to a lesser degree. Prices for animal and animal products fell 2.3% as decreases were registered for unprocessed whole milk, hogs for slaughter and cattle for slaughter. On a 12-month basis, the price of raw materials rose 12.9% in April, a significant increase from the 5.3% year-over-year gain in March. Mineral fuels were up 12.4% with crude oil prices rising 12.9% and natural gas prices increasing 10.0% from a year ago. If mineral fuels had been excluded, the RMPI would have increased 13.5% instead of rising 12.9%. Prices for non-ferrous metals rose 61.3%, mainly because of higher prices for zinc, radio-active concentrates, copper, gold and silver. Prices for vegetable products and non-metallic minerals were also up from a year ago. On the other hand, prices for ferrous materials, wood products as well as animal and animal products were down compared to April 2005. Impact of the exchange rateBetween March and April, the value of the Canadian dollar against the US dollar was up 1.2%. As a result, the total IPPI excluding the effect of the exchange would have risen 1.7% instead of its actual increase of 1.3%. On a 12-month basis, the value of the Canadian dollar rose 8.1% against the US dollar. If the impact of the exchange rate had been excluded, producer prices would have risen 4.3% between April 2005 and April 2006, rather than their actual increase of 2.2%. Higher prices for intermediate goodsPrices for intermediate goods increased 1.6% from March. Higher prices for petroleum products, primary metal products, pulp and paper products as well as beverages were the major contributors to this monthly rise. These increases were partly offset by lower prices for chemical products, lumber products, meat, fish and dairy products and fruit, vegetable and feed products. Producers of intermediate goods received 3.5% more for their goods in April 2006 than in April 2005. Higher prices were registered for petroleum products, primary metal products, rubber, leather and plastic fabricated products, chemical products and non-metallic mineral products. These increases were partly offset by lower prices for lumber products, pulp and paper products, motor vehicles, meat, fish and dairy products and fruit, vegetable and feed products. Finished goods prices increaseOn a monthly basis, prices for finished goods were up 0.6% from March. Higher prices for petroleum products, pulp and paper products and metal fabricated products were the major contributors to this monthly rise. These increases were partly offset by lower prices for motor vehicles and electrical and communication products. Compared with April 2005, prices for finished goods remained unchanged. Higher prices for petroleum products, tobacco products, chemical products, fruit, vegetable and feed products, furniture and fixtures and rubber, leather and plastic fabricated products were offset by lower prices for motor vehicles, electrical and communication products, lumber products, machinery and equipment and meat, fish and dairy products. Available on CANSIM: tables 329-0038 to 329-0049 and 330-0006. Definitions, data sources and methods: survey numbers, including related surveys, 2306 and 2318. The April 2006 issue of Industry Price Indexes (62-011-XIE, free, 62-011-XPE, $24/$233) will be available soon. The industrial product and raw material price indexes for May will be released on June 29. For more information, or to enquire about the concepts, methods or data quality of this release, contact the Client Services Unit (613-951-9606, fax: 613-951-1539, infounit@statcan.gc.ca) or Danielle Gouin (613-951-3375, danielle.gouin@statcan.gc.ca), Prices Division.
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