Canada's industrial product price index increased 0.6 percent in April, according to Statistics Canada. The Raw Materials Price Index increased 1.7 percent, primarily due to higher prices for crude energy products, particularly conventional crude oil. Of the 21 major commodity groups, 14 were up, 3 were down and 4 were unchanged.

The growth in the IPPI was mostly due to higher prices for energy and petroleum products (+2.9 percent). The gain in this commodity group was mainly due to higher prices for motor gasoline (+5.8 percent), which posted its largest increase since December 2016. Higher prices for light fuel oil (+2.4 percent), lubricants and other petroleum refinery products (+1.9 percent), and asphalt (except natural) and asphalt products (+2.3 percent) also contributed to the increase, but to a lesser extent. The IPPI excluding energy and petroleum products rose 0.3 percent.

Primary non-ferrous metal products (+1.6 percent) also contributed to the increase in the IPPI. Higher prices for unwrought precious metals and precious metal alloys (+2.9 percent), specifically unwrought gold and gold alloys (+3.8 percent) and unwrought silver and silver alloys (+4.1 percent), drove the increase in this commodity group. Higher prices for other unwrought non-ferrous metals and non-ferrous metal alloys (+1.4 percent), basic and semi-finished products of aluminum and aluminum alloys (+2.5 percent), and unwrought aluminum and aluminum alloys (+0.9 percent) also contributed to the increase in primary non-ferrous metal products.

Prices for motorized and recreational vehicles (+0.2 percent) rose for a second consecutive month, mainly due to higher prices for passenger cars and light trucks (+0.3 percent), motor vehicle engines and motor vehicle parts (+0.3 percent) and aircraft (+0.4 percent). Higher prices for motorized and recreational vehicles were closely linked to the depreciation of the Canadian dollar relative to the US dollar.

Pulp and paper products rose for a fourth consecutive month, up 0.9 percent in April mainly due to higher prices for wood pulp (+1.8 percent).

The increase in the IPPI was primarily moderated by lower prices for chemicals and chemical products (-0.3 percent), which posted their first monthly decrease since August 2016. Lower prices for petrochemicals (-1.5 percent) and other basic inorganic chemicals (-1 percent) were the main contributors to the decline.

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 fell 0.4 percent relative to the US dollar. If the exchange rate had remained constant, the IPPI would have increased 0.5 percent rather than rising 0.6 percent.

The IPPI rose 6.3 percent over the 12-month period ending in April, after increasing 5.1 percent in March. This was the largest year-over-year increase since October 2011.

Compared with April 2016, the increase in the IPPI was largely due to higher prices for energy and petroleum products (+20.8 percent), which posted a fifth consecutive year-over-year increase. The increase in this commodity group was mainly attributable to higher prices for motor gasoline (+15.5 percent), light fuel oil (+31.6 percent), diesel fuel (+24.5 percent) and, to a lesser extent, heavy fuel oil (+45.5 percent).

Primary non-ferrous metal products (+15.9 percent) also contributed significantly to the year-over-year increase in the IPPI. Prices for other unwrought non-ferrous metal and non-ferrous metal alloys (+39.3 percent), unwrought precious metals and precious metal alloys (+9.3 percent), unwrought aluminum and aluminum alloys (+24 percent) and unwrought copper and copper alloys (+23.9 percent) were the main contributors to the year-over-year increase in the primary non-ferrous metal products group.

Higher prices for motorized and recreational vehicles (+3.3 percent) and chemicals and chemical products (+7.5 percent) also contributed to the year-over-year increase in the IPPI. The increase in motorized and recreational vehicles was mainly due to higher prices for passenger cars and light trucks (+3.4 percent), motor vehicle engines and motor vehicle parts (+3.2 percent) and aircraft (+5.8 percent).

Prices for petrochemicals (+30.8 percent) and, to a lesser extent, plastic resins (+5.8 percent), ammonia and chemical fertilizers (+7.9 percent) and chemical products, not elsewhere classified (+6 percent) were largely responsible for the gain in the chemicals and chemical products group.

Raw Materials Price Index

The RMPI rose 1.6 percent in April following a 1.7 percent decline the previous month. Of the six major commodity groups, three were up and three were down.

The increase in the RMPI was primarily due to higher prices for crude energy products (+3.9 percent), particularly conventional crude oil (+4.2 percent). The RMPI excluding crude energy products edged down 0.1 percent.

To a lesser extent, prices for metal ores, concentrates and scrap (+1.3 percent), up for a fourth consecutive month, also contributed to the increase in the RMPI in April.

The growth in the RMPI was primarily moderated by lower prices for animals and animal products (-1.5 percent), specifically hogs (-11.3 percent). Prices for the logs, pulpwood, natural rubber and other forestry products group (-2 percent), particularly natural rubber (-10.4 percent), also decreased compared with March.

The RMPI rose 17.7 percent in the 12-month period ending in April, following a 16.7 percent increase in March.

Compared with April 2016, the increase in the RMPI was largely due to higher prices for crude energy products (+34.2 percent), mainly conventional crude oil (+36 percent). The RMPI excluding crude energy products rose 7.6 percent.

Prices for metal ores, concentrates and scrap (+17.8 percent) were also up compared with April 2016, following a 15 percent increase in March. This was the largest year-over-year increase for this group since July 2011.

To a lesser extent, animals and animal products (+3 percent) also contributed to the gain in the RMPI, mainly due to higher prices for fish, crustaceans, shellfish and other fishery products (+19.3 percent), cattle and calves (+3.5 percent) and unprocessed fluid milk (+2.8 percent).

Year over year, lower prices for animals and animal products (-1 percent) offset the growth in the RMPI. The decline in this commodity group was primarily due to lower prices for cattle and calves (-12.4 percent), but was offset by higher prices for hogs (+5.8 percent).