According to Statistics Canada, the Industrial Product Price Index (IPPI) declined 0.6 percent in March. The decline was led by lower prices for motorized and recreational vehicles, while higher prices for energy and petroleum products largely moderated the fall. The Raw Materials Price Index (RMPI) increased 4.5 percent, led by higher prices for crude energy products.
The IPPI declined 0.6 percent in March, after falling 1.0 percent in February. Of the 21 major commodity groups, 18 were down and 3 were up.
The motorized and recreational vehicles commodity group (-2.9 percent) was the main reason for the decline in the IPPI in March. Lower prices for passenger cars and light trucks (-3.0 percent), motor vehicle engines and motor vehicle parts (-2.1 percent), and aircraft (-3.9 percent) were the main reasons for the decline in this commodity group. Lower prices for motorized and recreational vehicles were closely linked to the appreciation of the Canadian dollar relative to the US dollar.
The IPPI declined 2.1 percent over the 12-month period ending in March, after declining 1.3 percent in February. Lower prices for both primary ferrous metal products (-11.9 percent) and primary non-ferrous metal products (-3.7 percent) also contributed to the year-over-year decline in the IPPI.
Lower prices for iron and steel basic shapes (-14.8 percent) and wire and other rolled and drawn steel products (-10.1 percent) were the main reasons for the decline in primary ferrous metal products. Moderating the year-over-year decline in the IPPI were higher prices for motorized and recreational vehicles (+3.0 percent), specifically higher prices for passenger cars and light trucks (+4.0 percent) and aircraft (+5.2 percent).
The RMPI increased 4.5 percent in March, following a gain of 0.7 percent in February. Of the six major commodity groups, three were up and three were down.
Metal ores, concentrates and scrap (+0.7 percent) contributed to the increase in the RMPI, but to a much lesser extent.
The RMPI declined 9.7 percent over the 12-month period ending in March.