The Industrial Product Price Index in Canada decreased 0.5 per cent in October, mainly due to lower prices for energy and petroleum products, said Statistics Canada Friday. The Raw Materials Price Index declined 4.3 per cent in October, largely as a result of lower prices for crude energy products.
The IPPI declined 0.5 per cent in October after decreasing 0.3 per cent in September. Of the 21 major commodity groups, 12 were up, 4 were down and 5 were unchanged.
Producer Prices, Canada
The decline in the IPPI was led by lower prices for energy and petroleum products, down 4.6 per cent, said Statistics Canada Friday. This was the largest decline for energy and petroleum products since June 2012. Motor gasoline dropped 7.2 per cent, and, to a lesser extent, light fuel oils, down 4.3 per cent and diesel fuel, down 3.3 per cent, were the main reasons for the decline in this commodity group.
Moderating the decline in the IPPI for October was higher prices for motorized and recreational vehicles, up 0.9 per cent.
For it’s part, the Raw Materials Price Index fell 4.3 per cent in October, following a 2.1 per cent decrease in September. It was the fourth consecutive monthly decline and the largest decrease in the index since the 4.4 per cent drop in June 2012. Of the six major commodity groups, two were down, three were up and one was unchanged.
The RMPI fell 2.3 per cent in the 12-month period ending in October, after declining 1.3 per cent in September. On a year-over-year basis, it was the largest decrease in the index since November 2013.
Compared with the same month a year earlier, the decrease in the RMPI was almost entirely attributable to a 9.2 per cent drop in the prices of crude energy products.
The decrease in the RMPI over the 12-month period was moderated mainly by higher prices for animals and animal products, up 14.3 per cent, which have been trending upward on a year-over-year basis since April 2013.