Canada's industrial product price index declined 0.5 percent in April, according to Statistics Canada. The decline was led by lower prices for motorized and recreational vehicles, while higher prices for energy and petroleum products helped moderate the fall. The Raw Materials Price Index increased 0.7 percent, led by higher prices for crude energy products.
The IPPI declined 0.5 percent in April, after falling 0.6 percent in March. Of the 21 major commodity groups, 3 were up, 14 were down and 4 were unchanged.
The motorized and recreational vehicles commodity group (-2.1 percent) was the main reason for the drop in the IPPI in April. Lower prices for passenger cars and light trucks (-2.2 percent), motor vehicle engines and motor vehicle parts (-1.6 percent), and aircraft (-3 percent) were the main reasons for the decline in the commodity group. Lower prices for motorized and recreational vehicles were closely linked to the appreciation of the Canadian dollar relative to the US dollar.
Also contributing to the decline in the IPPI were lower prices for primary non-ferrous metal products (-2.8 percent). The main reason for the decrease in the commodity group was lower prices for unwrought precious metals and precious metal alloys (-1.7 percent), unwrought aluminum and aluminum alloys (-4.7 percent), and unwrought copper and copper alloys (-4.8 percent).
To a lesser extent, electrical, electronic, audiovisual and telecommunication products (-1.3 percent) and meat, fish, and dairy products (-0.1 percent) also contributed to the decline in the IPPI.
Lower prices for communication and audio and video equipment (-1.2 percent) and electronic and electrical parts (-1.6 percent) were the main reasons for the drop in the electrical, electronic, audiovisual and telecommunication products commodity group. Lower prices for fresh and frozen beef and veal (-1.1 percent) and, to a lesser extent, fresh and frozen poultry of all types (-0.5 percent) were the main reasons for the decline in meat, fish, and dairy products. Higher prices for fresh and frozen pork (+0.8 percent) slightly moderated the decrease.
The decline in the IPPI in April was moderated by higher prices for energy and petroleum products (+2.2 percent). The increase was led by prices for motor gasoline (+7.5 percent), while lower prices for diesel fuel (-2.7 percent) and light fuel oils (-2.1 percent) moderated the gain. The IPPI excluding energy and petroleum products was down 0.8 percent in April.
Some IPPI prices are reported in US dollars and converted to Canadian dollars using the average monthly exchange rate. Consequently, any change in the value of the Canadian dollar relative to the US dollar will affect the level of the index. From March to April, the Canadian dollar appreciated 3.1 percent relative to the U.S. dollar. If the exchange rate had remained constant, the IPPI would have increased 0.3 percent instead of decreasing 0.5 percent.
The IPPI declined 1.6 percent over the 12-month period ending in April, after falling 2.0 percent in March.
The main reason for the decline in the IPPI was lower prices year over year for energy and petroleum products (-13.9 percent). Motor gasoline (-8.1 percent), light fuel oils (-18.9 percent), diesel fuel (-18.4 percent) and heavy fuel oils (-29.6 percent) contributed to the drop in prices for energy and petroleum products. The IPPI excluding energy and petroleum products increased 0.3 percent in April from the same month last year.
Lower prices for primary non-ferrous metal products (-5.8 percent) and primary ferrous metal products (-10.2 percent) also contributed to the year-over-year decline in the IPPI.
Lower prices for unwrought copper and copper alloys (-17.2 percent), unwrought aluminum and aluminum alloys (-11.7 percent), and basic and semi-finished products of aluminum and aluminum alloys (-14.4 percent) were the main reasons for the decline in primary non-ferrous metal products. The decrease in primary ferrous metal products was led by lower prices for iron and steel basic shapes (-12.6 percent) and iron and steel pipe and tube (except castings) (-13 percent).
Moderating the year-over-year decline in the IPPI were higher prices for motorized and recreational vehicles (+2.5 percent), specifically passenger cars and light trucks (+3.1 percent) and aircraft (+4.5 percent).
Raw Materials Price Index
The RMPI increased 0.7 percent in April, following a 4.5 percent gain in March. Of the six major commodity groups, two were up and four were down.
The increase in the RMPI was mainly attributable to higher prices for crude energy products (+4.2 percent), specifically conventional crude oil (+4.6 percent). The RMPI excluding crude energy products declined 1.2 percent in April.
Declining prices for animals and animal products (-2.0 percent) and metal ores, concentrates and scrap (-1.4 percent) largely moderated the decrease in the RMPI in April. The drop in prices for animals and animal products was led by lower prices for cattle and calves (-5.8 percent) and, to a lesser extent, hogs (-1.5 percent).
The RMPI declined 12.5 percent over the 12-month period ending in April.
Lower prices for crude energy products (-22.7 percent), specifically conventional crude oil (-23.4 percent), were largely responsible for the decrease. The RMPI excluding crude energy products declined 5.0 percent.
To a lesser extent, lower prices for animals and animal products (-7.7 percent) also contributed to the year-over-year decline in the RMPI. The decrease in this commodity group was led by lower prices for cattle and calves (-22.9 percent), while higher prices for hogs (+6.6 percent) helped moderate the fall.
