Machinery and Equipment Price Index, first quarter 2017
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Released: 2017-05-25
The Machinery and Equipment Price Index (MEPI) decreased 0.4% in the first quarter, following a 2.2% increase in the fourth quarter. The import component was down 0.4%, while the domestic component decreased 0.1%.
The prices of imported machinery and equipment are reported in US dollars and are converted to Canadian dollars. Consequently, any change in the value of the Canadian dollar relative to the US dollar will affect the level of the index. The Canadian dollar appreciated 0.8% relative to the US dollar in the first quarter compared with the fourth quarter.
All industries posted decreases in the prices of machinery and equipment purchased in the first quarter. Other services excluding public administration (-0.7%) was the largest contributor to the quarterly decrease in the MEPI. Transportation and warehousing (-0.6%), finance, insurance and real estate (-0.3%), mines quarries and oil wells (-0.4%) and public administration (-0.5%) also contributed to the decline in prices.
Most commodities posted decreases in the first quarter. Computers and computer peripheral equipment (-0.9%), logging, mining and construction machinery and equipment (-0.6%) and other communications equipment (-0.9%) all contributed to the quarterly price decrease.
Year-over-year change
The total MEPI decreased 2.9% in the first quarter compared with the same quarter of 2016.
The import component fell 3.4% and the domestic component was down 0.9%. The movement in the import component was partly influenced by the year-over-year appreciation of the Canadian dollar (+3.9%) against the US dollar.
Note to readers
The Machinery and Equipment Price Index (MEPI) provides quarterly estimates of price changes for machinery and equipment purchased by industries in Canada.
Data are available at the Canada level only.
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, which is available in CANSIM table 176-0064 (series v37426). Quarterly and year-over-year 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 contribution of a given sub-aggregate to the composite price change depends on both the price change exhibited by the sub-aggregate and its importance in the basket, as measured by the weight.
With each release, data for the previous two quarters may have been revised. This index is not seasonally adjusted.
Infographic: Producer Price Indexes at a Glance
The infographic "Producer Price Indexes at a Glance," which is part of Statistics Canada — Infographics (11-627-M), demonstrates how producer price indexes for goods and services are calculated and why they are important for the Canadian economy.
Contact information
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