Industrial product and raw materials price indexes, February 2019
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Released: 2019-03-29
February 2019
0.3% 
(monthly change)
February 2019
-0.1% 
(monthly change)
February 2019
4.6%
(monthly change)
February 2019
0.8%
(monthly change)
Prices for products manufactured in Canada rose 0.3% in February, mainly due to higher prices for energy and petroleum products. Prices for raw materials purchased by manufacturers operating in Canada increased 4.6%, primarily due to higher prices for crude energy products.
Chart 1
Prices for industrial goods increase
Industrial Product Price Index
On a monthly basis, the Industrial Product Price Index (IPPI) was up 0.3% in February, following three consecutive monthly declines. From January to February, the Canadian dollar appreciated 0.7% relative to the US dollar. If the exchange rate had remained constant, the IPPI would have increased 0.5% instead of 0.3%.
Of the 21 major commodity groups, 6 were up, 11 were down and 4 were unchanged.
The growth of the IPPI in February was mainly due to higher prices for energy and petroleum products (+3.1%), particularly motor gasoline (+3.6%), light fuel oils (+4.6%) and diesel fuel (+3.9%). The IPPI excluding energy and petroleum products edged down 0.1%.
Prices for chemicals and chemical products (+1.1%) and primary non-ferrous metal products (+0.8%) also contributed to the growth in the IPPI, but to a lesser extent.
Conversely, prices for meat, fish, and dairy products (-0.6%) and for primary ferrous metal products (-1.3%) were down compared with the previous month.
Year over year, the IPPI rose 1.2% in February, following a 1.0% gain in January. The increase was mainly attributable to motorized and recreational vehicles (+3.1%), primary ferrous metal products (+11.4%) and pulp and paper products (+7.2%).
Raw Materials Price Index
On a monthly basis, the Raw Materials Price Index (RMPI) rose 4.6% in February, after rising 4.0% in January. Of the six major commodity groups, four were up and two were down.
The increase in the RMPI in February was primarily due to higher prices for crude energy products (+9.3%), particularly conventional crude oil (+9.9%). The RMPI excluding crude energy products rose 0.8%.
Year over year, the RMPI declined 0.6% following a 5.1% decrease in January. Prices for animals and animal products (-5.1%) and metal ores, concentrates and scrap (-3.2%) were the main sources of this decline.
Chart 2
Prices for raw materials increase
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 established by the Bank of Canada and available in table 33-10-0163-01 (series v111666275). 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.
A Historical Timeline of Canadian Producer Price Statistics
The publication "A Historical Timeline of Canadian Producer Price Statistics," which is part of the Prices Analytical Series (62F0014M), was created to showcase the key milestones in the history of Canadian producer price statistics. This historical timeline contains answers to questions such as: Who collected Canada's first statistics? What do Canadian producer price indexes measure?
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.
Real-time table
Real-time table 18-10-0248-01 will be updated on April 8.
Next release
The industrial product and raw materials price indexes for March will be released on April 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).
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