According to Statistics Canada, the Industrial Product Price Index (IPPI) increased 1.1 percent in May, mainly due to higher prices for energy and petroleum products. The Raw Materials Price Index (RMPI) rose 6.7 percent, led by a gain in prices for crude energy products.
The IPPI rose 1.1 percent in May, following a 0.5 percent decline in April. This was the largest monthly gain since February 2015, when prices grew 1.9 percent.
Prices for motorized and recreational vehicles (+0.7 percent) increased in May, led by gains in passenger cars and light trucks (+0.6 percent), motor vehicle engines and motor vehicle parts (+0.5 percent), and aircraft (+1.1 percent). Higher prices for motorized and recreational vehicles were closely linked to the depreciation of the Canadian dollar relative to the US dollar.
The IPPI declined 1.1 percent over the 12-month period ending in May, after falling 1.6 percent in April. Lower prices for primary ferrous metal products (-9.5 percent) and contributed to the year-over-year decrease in the IPPI; lower prices for iron and steel basic shapes (-13.4 percent), and iron and steel pipes and tubes (except castings) (-14.3 percent) were the main reasons for the decline in primary ferrous metal products.
Moderating the year-over-year decrease in the IPPI were higher prices for motorized and recreational vehicles (+4.0 percent), specifically passenger cars and light trucks (+4.4 percent) and aircraft (+6.8 percent).
The RMPI rose 6.7 percent in May, after increasing 0.7 percent in April. All of the six major commodity groups posted increases. The RMPI declined 10.6 percent over the 12-month period ending in May.