Industrial Product Price Index: Flash estimates, March 2021
The Industrial Product Price Index (IPPI) increased 1.6% in March, marking its fourth consecutive month of growth. Excluding energy and petroleum products, the IPPI rose 1.3%.
The gain in the IPPI was led primarily by higher prices for lumber and other wood products (+10.2%), particularly softwood lumber (+11.9%). This is the fourth consecutive monthly increase for softwood lumber. Year over year, softwood lumber was up 118.9%—the largest ever year-over-year increase posted by this product, since the series began in 1956.
Increased prices for energy and petroleum products (+5.0%) and chemicals and chemical products (+2.8%) also contributed to the gain in the IPPI. Higher prices for energy and petroleum products were driven mostly by gains in refined petroleum products (+5.6%), while those for chemicals and chemical products were led mainly by plastic resins (+9.8%), petrochemicals (+4.8%), and ammonia and chemical fertilizers (+6.6%). Prices for fruit, vegetables, feed and other food products (+1.7%), which were driven higher primarily by grain and oilseed products not elsewhere classified (+6.0%), also supported the growth of the IPPI in March.
Primary non-ferrous metals were down 1.3% in March—their first decrease since October 2020. This decline was led mainly by lower prices for unwrought gold, silver, and platinum group metals and their alloys (-6.0%).
Year over year, the IPPI increased 9.4%, its largest gain since October 2008 (+9.8%). Excluding energy and petroleum products, the IPPI rose 7.4% 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 March 2021. These are referred to as flash estimates and are subject to revision when the index is officially released on April 30, 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.
The product "Industrial Product Price Index: Annual review, 2020" is now available. This document is a review of how producer prices, as measured by the IPPI, changed in 2020 compared with 2019. The effects of the COVID-19 pandemic on the global economy had a substantial influence on the prices of many commodities sold by manufacturers operating in Canada in 2020. Prices for energy and petroleum products; primary non-ferrous metal products; lumber and other wood products; and meat, fish and dairy products contributed the most to the change in the IPPI in 2020.
The product "Industrial Product Price Index: Annual review, 2020" is now available as part of the Prices Analytical Series (62F0014M).
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).