Industrial Product Price Index: Flash estimates, December 2020
The Industrial Product Price Index (IPPI) increased 1.4% in December, following two months of decline. Excluding energy and petroleum products, the IPPI rose 0.9%.
The gain in the IPPI was led mainly by higher prices for lumber and other wood products (+10.8%), particularly softwood lumber (+21.7%). This increase comes after two months of decline in October and November, following record and near-record increases from July to September. Prices for energy and petroleum products (+7.9%) also contributed significantly to the increase in the IPPI, particularly refined petroleum energy products (+9.2%) such as diesel and biodiesel fuels (+10.1%) and motor gasoline (+7.7%). Prices for primary non-ferrous metal products (+3.1%) also supported the IPPI's growth, led mainly by higher prices for unwrought aluminum and aluminum alloys (+8.1%) and unwrought copper and copper alloys (+7.6%). Prices for chemicals and chemical products (+2.2%) also posted an increase in December.
Prices for meat, fish and dairy products (-3.4%) declined in December, led mainly by decreased prices for fresh and frozen beef and veal (-11.3%), as well as for fresh and frozen pork (-8.4%).
Year over year, the IPPI increased 1.5%. Excluding energy and petroleum products, the IPPI rose 4.4% year over year.
Note to readers
To provide Canadians with timely economic data, Statistics Canada is releasing early estimates of the Industrial Product Price Index (IPPI) for December 2020. These are referred to as flash estimates and are subject to revision when the index is officially released on January 29, 2021. Because flash estimates are calculated using preliminary data, these values should be used with caution.
Basket update and methodology changes
Starting with the October 2020 reference period, the IPPI and Raw Materials Price Index (RMPI) are using an updated basket and methodology. The indexes have been converted from 2010 = 100 to January 2020 = 100 and also updated to use a weighting pattern based on the 2016 production values of Canadian manufacturers.
At the same time, the IPPI and RMPI have been modernized with the adoption of a weighted geometric (Jevons) formula and the incorporation of parental imputation as the default imputation methodology for missing price quotes.
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).