According to Statistics Canada, the Industrial Product Price Index (IPPI) rose 0.5 percent in January, mainly as a result of higher prices for motorized and recreational vehicles. Lower prices for energy and petroleum products largely moderated the increase in the IPPI. The Raw Materials Price Index (RMPI) declined 0.4 percent, led by lower prices for crude energy products.
The IPPI rose 0.5 percent in January, posting its first increase since July 2015. Among the 21 major commodity groups, 18 were up and 3 were down.
Largely moderating the decline in energy and petroleum products were higher prices for motorized and recreational vehicles (+2.7 percent). Higher prices for passenger cars and light trucks (+2.8 percent), motor vehicle engines and motor vehicle parts (+1.9 percent), as well as aircraft (+3.8 percent) were the main reasons for the increase in motorized and recreational vehicles.
The IPPI increased 1.7 percent over the 12-month period ending in January, posting its second consecutive year-over-year gain.
The main reason for the rise in the IPPI was motorized and recreational vehicles (+11.4 percent), specifically year-over-year increases in the prices for passenger cars and light trucks (+12.6 percent), motor vehicle engines and motor vehicle parts (+6.9 percent), as well as aircraft (+17.5 percent).
Moderating the increase in the IPPI were year-over-year declines in prices for primary ferrous metal products (-9.6 percent), led by prices for iron and steel basic shapes (-13.1 percent), and iron and steel pipe and tube (except castings) (-9.3 percent).
The RMPI declined 0.4 percent in January, after falling 5.2 percent in December. Of the six major commodity groups, four were up and two were down. Metal ores, concentrates and scrap (+1.2 percent) moderated the decrease in the RMPI.
The RMPI declined 7.5 percent over the 12-month period ending in January. Contributing to the year-over-year decline in the RMPI were lower prices for metal ores, concentrates and scrap (-10.0 percent).