Industrial product and raw materials price indexes, September 2019
Prices for products manufactured in Canada edged down 0.1% in September, primarily as a result of lower prices for meat, fish and dairy products. Prices for raw materials purchased by manufacturers operating in Canada were unchanged from August. Higher prices for crude energy products were mostly offset by lower prices for animals and animal products.
Industrial Product Price Index
In September, the Industrial Product Price Index (IPPI) edged down 0.1%, following a 0.2% increase in August. Of the 21 major commodity groups, 7 were down, 11 were up and 3 were unchanged.
The decline in the IPPI in September was almost entirely due to lower prices for meat, fish and dairy products (-3.4%). The drop in this commodity group was mostly attributable to lower prices for fresh and frozen pork (-12.0%), which saw its largest monthly decline since September 2000 (-15.6%).
The decrease in the IPPI was mostly offset by primary non-ferrous metal products (+1.7%), mainly due to higher prices for unwrought precious metals and precious metal alloys (+3.3%).
Prices for energy and petroleum products (+0.5%) and for chemicals and chemical products (+0.5%) were also up from August.
Higher prices for energy and petroleum products were driven mainly by a 3.5% increase in diesel fuel prices. Higher prices for chemicals and chemical products were primarily the result of an increase in prices for petrochemicals (+2.2%).
Year over year, the IPPI fell 1.3% in September, mainly due to lower prices for energy and petroleum products (-10.2%).
Raw Materials Price Index
The Raw Materials Price Index (RMPI) was unchanged in September, compared with August. Higher prices for crude energy products were largely moderated by lower prices for animals and animal products. Of the six major commodity groups, three were up and three were down.
Crude energy products rose 2.7% in September, after falling 4.3% the previous month. This gain was primarily driven by higher prices for conventional crude oil (+2.8%). Attacks on Saudi Arabian oil facilities were largely responsible for this increase. The RMPI excluding crude energy products fell 2.0%.
The gain in crude energy products was mostly offset by lower prices for animals and animal products (-6.2%). Prices for hogs (-23.5%), which saw their largest decline since August 2018 (-28.6%), drove this commodity group down.
Year over year, the RMPI (-5.3%) fell for a fifth consecutive month in September. This decline was primarily due to lower prices for crude energy products (-11.5%), particularly conventional crude oil (-11.6%).
Note to readers
With each release, data for the previous six months may have been revised. The indexes are not seasonally adjusted.
The Industrial Product Price Index reflects the prices that producers in Canada receive as goods leave the plant gate. It does not reflect what the consumer pays. Unlike the Consumer Price Index, the IPPI excludes indirect taxes and all the costs that occur between the time a good leaves the plant and the time the final user takes possession of it, including transportation, wholesale and retail costs.
Canadian producers export many goods. They often indicate their prices in foreign currencies, especially in US dollars, which are then converted into Canadian dollars. In particular, this is the case for motor vehicles, pulp, paper and wood products. Therefore, a rise or fall in the value of the Canadian dollar against its US counterpart affects the IPPI. However, the conversion into Canadian dollars reflects only how respondents provide their prices. This is not a measure that takes the full effect of exchange rates into account.
The conversion of prices received in US dollars is based on the average monthly exchange rate established by the Bank of Canada and available in table 33-10-0163-01 (series v111666275). Monthly and annual variations in the exchange rate, as described in the release, are calculated according to the indirect quotation of the exchange rate (for example, CAN$1 = US$X).
The Raw Materials Price Index reflects the prices paid by Canadian manufacturers for key raw materials. Many of those prices are set on the world market. However, as few prices are denominated in foreign currencies, their conversion into Canadian dollars has only a minor effect on the calculation of the RMPI.
Statistics Canada has launched the Producer Price Indexes Portal as part of a suite of portals for prices and price indexes. This webpage provides Canadians with a single point of access to a wide variety of statistics and measures related to producer prices. The portal offers an array of information on topics such as manufacturing, construction, professional services, distributive trades and financial services. The portal will be updated regularly as new information becomes available.
The video "Producer Price Indexes" is available on the Statistics Canada Training Institute webpage. It provides an introduction to Statistics Canada's producer price indexes—what they are, how they are made and what they are used for.
A Historical Timeline of Canadian Producer Price Statistics
The publication "A Historical Timeline of Canadian Producer Price Statistics," part of the Prices Analytical Series (), was created to showcase the key milestones in the history of Canadian producer price statistics. This historical timeline contains answers to questions such as: "Who collected Canada's first statistics?" and "What do Canadian producer price indexes measure?" 62F0014M
Infographic: Producer Price Indexes at a Glance
The infographic "Producer Price Indexes at a Glance," part of the series Statistics Canada — Infographics (), demonstrates how producer price indexes for goods and services are calculated and why they are important for the Canadian economy. 11-627-M
Real-time table 18-10-0248-01 will be updated on November 12.
The industrial product and raw materials price indexes for October will be released on November 29.
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; STATCAN.infostats-infostats.STATCAN@canada.ca) or Media Relations (613-951-4636; STATCAN.mediahotline-ligneinfomedias.STATCAN@canada.ca).
- Date modified: