Canada's industrial product price index increased 0.4 percent in September, according to Statistics Canada. Of the 21 major commodity groups, 15 were up, 5 were down, and 1 was unchanged.
Higher prices for energy and petroleum products (+0.9 percent) in September largely contributed to the increase in the IPPI. The gain in this commodity group was primarily attributable to higher prices for light fuel oils (+2.6 percent), motor gasoline (+0.7 percent), and, to a lesser extent, heavy fuel oils (+3.3 percent), jet fuel (+3.5 percent), and diesel fuel (+0.9 percent).
Moderating the rise in energy and petroleum products were lower prices for asphalt (except natural) (-6.3 percent). The IPPI excluding energy and petroleum products rose 0.3 percent.
Also contributing to the increase in the IPPI were higher prices for motorized and recreational vehicles (+0.6 percent), specifically passenger cars and light trucks (+0.6 percent), motor vehicle engines and motor vehicle parts (+0.4 percent), as well as aircraft (+0.9 percent). Higher prices for motorized and recreational vehicles were closely linked to the depreciation of the Canadian dollar relative to the U.S. dollar.
Chemicals and chemical products (+1.0 percent) also rose in September, led by higher prices for petrochemicals (+3.8 percent) and other basic inorganic chemicals (+2.4 percent).
Moderating the increase in the IPPI were lower prices for fruit, vegetables, feed and other food products (-0.3 percent), and meat, fish and dairy products (-0.1 percent).
Lower prices for other animal feed (-2.9 percent), flour and other grain mill products (-2.8 percent), and, to a lesser extent, grain and oilseed products (not elsewhere classified) (-0.3 percent) were the main reasons for the decline in fruit, vegetables, feed and other food products. The decrease in prices for meat, fish and dairy products was primarily attributable to lower prices for fresh and frozen pork (-3.3 percent), while higher prices for fresh and frozen beef and veal (+1.1 percent), and fresh and frozen poultry of all types (+1.2 percent) moderated the fall in the commodity group.
Some IPPI prices are reported in U.S. dollars and are converted to Canadian dollars using the average monthly exchange rate. Consequently, any change in the value of the Canadian dollar relative to the U.S. dollar will affect the level of the index. From August to September, the Canadian dollar depreciated 0.9 percent relative to the U.S. dollar. If the exchange rate had remained constant, the IPPI would have increased 0.2 percent instead of rising 0.4 percent.
The IPPI declined 0.5 percent over the 12-month period ending in September, after falling 1.3 percent in August.
The year-over-year decrease in the IPPI in August was largely attributable to lower prices for energy and petroleum products (-5.1 percent). Motor gasoline (-4.9 percent) and diesel fuel (-6.0 percent) were the main reasons for the decline in this commodity group. The IPPI excluding energy and petroleum products rose 0.2 percent in September.
Also contributing to the decline were lower prices for meat, fish, and dairy products (-3.7 percent), specifically fresh and frozen beef and veal (-14.6 percent), and, to a lesser extent, fresh and frozen pork (-5.0 percent). Moderating the year-over-year decline in meat, fish, and dairy products were higher prices for dairy products (+2.7 percent), specifically cheese and cheese products (+4.0 percent), and fluid milk and processed milk products (+3.3 percent).
Prices for chemicals and chemical products (-2.1 percent) also fell in September, mainly because of lower prices for ammonia and chemical fertilizers (-19.2 percent), and plastic resins (-5.5 percent).
Moderating the year-over-year decline in the IPPI were higher prices for primary non-ferrous metal products (+5.6 percent), which were mainly attributable to unwrought precious metals and precious metal alloys (+17.9 percent). Lower prices for unwrought copper and copper alloys (-10.6 percent) moderated the gain in the commodity group.
Raw Materials Price Index
The RMPI edged down 0.1 percent in September, after declining 0.7 percent in August. Of the six major commodity groups, three were up, and three were down.
The decline in the RMPI was led by lower prices for animals and animal products (-3.7 percent), specifically cattle and calves (-7.8 percent), and hogs (-9.1 percent).
Largely offsetting the decline in animals and animal products were higher prices for crude energy products (+2.4 percent), led by an increase in conventional crude oil (+2.4 percent). The RMPI excluding crude energy products decreased 1.6 percent.
Prices for crop products (-0.9 percent) fell in September, mainly as a result of oilseeds (except canola) (-3.2 percent), grains (except wheat) (-0.5 percent), and canola (including rapeseed) (-1.7 percent).
Prices for metal ores, concentrates and scrap fell 0.7 percent.
After posting the first year-over-year gain since July 2014 in August, the RMPI fell 1.9 percent in September.
The decline was led by lower prices for animals and animal products (-11.3 percent), specifically cattle and calves (-28.2 percent), and, to a lesser extent, hogs (-18.4 percent).
Year over year, prices for crop products (-3.5 percent) also fell in September, led by other crop products (-3.7 percent), wheat (-9.6 percent) and canola (including rapeseed) (-6.4 percent). Higher prices for fresh potatoes (+17.7 percent) tempered the decrease.
Moderating the decline in the RMPI were higher prices for metal ores, concentrates and scrap (+4.5 percent).
