According to Statistics Canada, the Industrial Product Price Index (IPPI) declined 1.1 percent in February, led by lower prices for energy and petroleum products. The Raw Materials Price Index (RMPI) fell 2.6 percent, mainly as a result of lower prices for crude energy products.
The IPPI declined 1.1 percent in February, after increasing 0.5 percent in January. This was the largest decline in the IPPI since December 2014, when prices fell 1.5 percent. Of the 21 major commodity groups, 4 were up, 15 were down and 2 were unchanged.
Contributing to the decline in the IPPI were lower prices for motorized and recreational vehicles (-1.8 percent). Lower prices for passenger cars and light trucks (-1.9 percent), motor vehicle engines and motor vehicle parts (-1.6 percent), and aircraft (-2.9 percent) were the main reasons for the decrease in this commodity group. Lower prices in February for motorized and recreational vehicles were closely linked to the appreciation of the Canadian dollar relative to the US dollar.
The RMPI fell 2.6 percent in February, following a 0.4 percent decline in January. Of the six major commodity groups, two were up and four were down.
The decline in the RMPI was mainly attributable to lower prices for crude energy products (-9.4 percent), specifically conventional crude oil (-10.0 percent). The RMPI excluding crude energy products increased 1.2 percent in February.
Moderating the decline in the RMPI were higher prices for metal ores, concentrates and scrap (+3.0 percent), as well as animals and animal products (+1.2 percent).