The Daily
|
 In the news  Indicators  Releases by subject
 Special interest  Release schedule  Information

Industrial product and raw materials price indexes, January 2017

Warning View the most recent version.

Archived Content

Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please "contact us" to request a format other than those available.

Released: 2017-02-28

The Industrial Product Price Index (IPPI) rose 0.4% in January, mainly due to higher prices for energy and petroleum products. The Raw Materials Price Index (RMPI) increased 1.7%, led by higher prices for animals and animal products.

Chart 1  Chart 1: Prices for industrial goods increase
Prices for industrial goods increase

Industrial Product Price Index, monthly change

The IPPI (+0.4%) increased for a fifth consecutive month in January, following a 0.3% gain in December. Of the 21 major commodity groups, 6 were up, 10 were down and 5 were unchanged.

Prices for energy and petroleum products (+2.7%) were largely responsible for the gain in the IPPI in January. The increase in this commodity group was mainly attributable to higher prices for motor gasoline (+3.0%) and heavy fuel oils (+8.6%). The price of lubricants and other petroleum refinery products (+4.5%), diesel fuel (+1.3%) and jet fuel (+4.5%) also contributed to the increase in energy and petroleum products, but to a lesser extent. The IPPI excluding energy and petroleum products edged up 0.1%.

Meat, fish and dairy products (+2.2%) also contributed significantly to the increase in the IPPI. Higher prices for fresh and frozen pork (+5.9%), fresh and frozen beef and veal (+5.1%) and processed meat products, other meats and animal by-products (+2.0%) were the main reasons for the growth in this commodity group.

Primary non-ferrous metal products were up 0.9% in January, primarily due to higher prices for unwrought precious metals and precious metal alloys (+1.7%) and, to a lesser extent, unwrought aluminum and aluminum alloys (+1.6%).

The increase in the IPPI was primarily moderated by lower prices for motorized and recreational vehicles (-0.6%). The decline in this group was mainly the result of lower prices for passenger cars and light trucks (-0.7%), motor vehicle engines and motor vehicle parts (-0.5%) and aircraft (-0.9%). The decrease in prices for motorized and recreational vehicles was closely linked to the gain in the Canadian dollar relative to the US dollar.

Some IPPI prices are reported in US dollars and converted to Canadian dollars using the average monthly exchange rate. As a result, any change in the value of the Canadian dollar relative to the US dollar will affect the level of the index. From December to January, the Canadian dollar rose 1.0% relative to the US dollar. If the exchange rate had remained constant, the IPPI would have increased 0.7% instead of 0.4%.

Industrial Product Price Index, 12-month change

The IPPI increased 2.3% over the 12-month period ending in January, after posting an identical increase in December.

Compared with January 2016, the growth in the IPPI was mainly attributable to higher prices for energy and petroleum products (+22.7%), which registered their largest year-over-year increase since November 2011. Motor gasoline (+22.0%), light fuel oil (+35.7%), diesel fuel (+27.3%) and heavy fuel oil (+52.7%) were the biggest contributors to higher prices for energy and petroleum products. The IPPI excluding energy and petroleum products declined 0.2% in January.

To a lesser extent, primary non-ferrous metal products (+7.7%) also contributed to the year-over-year increase in the IPPI. Higher prices for other unwrought non-ferrous metals and non-ferrous metal alloys (+32.0%), unwrought precious metals and precious metal alloys (+4.6%) and unwrought copper and copper alloys (+18.7%) led the gain in this commodity group.

Lower prices for motorized and recreational vehicles (-5.0%) primarily moderated the year-over-year increase in the IPPI. Prices for passenger cars and light trucks (-5.3%) and, to a lesser extent, motor vehicle engines and motor vehicle parts (-4.1%) and aircraft (-6.3%) were mainly behind the decline in this commodity group.

The meat, fish and dairy product group (-1.5%) also exerted downward pressure on the IPPI, as a result of lower prices for fresh and frozen beef and veal (-9.4%) and, to a lesser extent, fresh and frozen poultry of all types (-3.0%) and fresh and frozen pork (-1.8%).

Telling Canada's story in numbers; #ByTheNumbers

In celebration of the country's 150th birthday, Statistics Canada is presenting snapshots from our rich statistical history.

During the First World War and the years immediately following, Canada experienced high producer price inflation, as measured by the Wholesale Price Index (WPI). From 1914 to 1918, the WPI increased 104%. The largest price increases were recorded for animals and meats (+247%), raw furs (+193%), textiles (+167%) and metals (+140%).

Inflation continued after the war, with prices rising a further 20% from 1918 to 1920. Raw furs (+88%) and lumber (+82%) had the greatest gains. Large movements were also reported for house furnishings (+48%), liquors and tobacco (+44%) and paints, oil and glass (+43%).

Raw Materials Price Index, monthly change

The RMPI increased 1.7% in January, following a 6.5% gain in December. Of the six major commodity groups, five were up and one was down.

Chart 2  Chart 2: Prices for raw materials increase
Prices for raw materials increase

The increase in the RMPI was mainly attributable to higher prices for animals and animal products (+4.9%), specifically hogs (+16.0%) as well as cattle and calves (+7.6%). This was the largest increase in the animals and animal products group since July 2014, when prices rose 4.9%.

Prices for metal ores, concentrates and scrap (+1.8%), up for a third consecutive month, also contributed to the gain in the RMPI in January.

Crude energy products rose 0.9% in January, following a 14.2% increase the previous month. The main reason for this gain was higher prices for conventional crude oil, which rose 1.0%. The RMPI excluding crude energy products was up 2.4%.

Raw Materials Price Index, 12-month change

The RMPI posted a 23.0% gain over the 12-month period ending in January, after rising 17.2% in December.

Compared with January 2016, the increase in the RMPI was mostly due to higher prices for crude energy products (+57.8%), particularly conventional crude oil (+61.0%). It was the highest year-over-year increase for crude energy products since January 2010.

Prices for metal ores, concentrates and scrap (+17.7%) also contributed to the year-over-year increase of the RMPI, albeit to a lesser extent.

Compared with January 2016, the growth in the RMPI was primarily moderated by lower prices for animals and animal products (-2.6%), especially cattle and calves (-13.7%).



  Note to readers

The Industrial Product Price Index (IPPI) and Raw Materials Price Index (RMPI) are available at the Canada level only. Selected commodity groups within the IPPI are also available by region.

With each release, data for the previous six months may have been revised. The indexes are not seasonally adjusted.

The Industrial Product Price Index reflects the prices that producers in Canada receive as the goods leave the plant gate. It does not reflect what the consumer pays. Unlike the Consumer Price Index, the IPPI excludes indirect taxes and all the costs that occur between the time a good leaves the plant and the time the final user takes possession of it, including transportation, wholesale and retail costs.

Canadian producers export many goods. They often indicate their prices in foreign currencies, especially in US dollars, which are then converted into Canadian dollars. In particular, this is the case for motor vehicles, pulp, paper and wood products. Therefore, a rise or fall in the value of the Canadian dollar against its US counterpart affects the IPPI. However, the conversion into Canadian dollars only reflects how respondents provide their prices. This is not a measure that takes the full effect of exchange rates into account.

The conversion of prices received in US dollars is based on the average monthly exchange rate (noon spot rate) established by the Bank of Canada and available in CANSIM table 176-0064 (series v37426). Monthly and annual variations in the exchange rate, as described in the release, are calculated according to the indirect quotation of the exchange rate (for example, CAN$1 = US$X).

The Raw Materials Price Index reflects the prices paid by Canadian manufacturers for key raw materials. Many of those prices are set on the world market. However, as few prices are denominated in foreign currencies, their conversion into Canadian dollars has only a minor effect on the calculation of the RMPI.

Infographic: Producer Price Indexes at a Glance

The infographic "Producer Price Indexes at a Glance," which is part of Statistics Canada — Infographics (Catalogue number11-627-M), demonstrates how producer price indexes for goods and services are calculated and why they are important for the Canadian economy.

Real-time CANSIM tables

Real-time CANSIM table 329-8074 will be updated on March 7. For more information, consult the document Real-time CANSIM tables.

Next release

The industrial product and raw materials price indexes for February will be released on March 30.

Contact information

For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; STATCAN.infostats-infostats.STATCAN@canada.ca) or Media Relations (613-951-4636; STATCAN.mediahotline-ligneinfomedias.STATCAN@canada.ca).

Report a problem on this page

Is something not working? Is there information outdated? Can't find what you're looking for?

Please contact us and let us know how we can help you.

Privacy notice

Date modified: