Industrial product and raw materials price indexes, November 2024
Released: 2024-12-23
November 2024
0.6% 
(monthly change)
November 2024
0.5%
(monthly change)
November 2024
-0.5% 
(monthly change)
November 2024
0.6%
(monthly change)
Prices of products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI), increased 0.6% month over month in November and rose 2.2% on a yearly basis. Prices of raw materials purchased by manufacturers operating in Canada, as measured by the Raw Materials Price Index (RMPI), declined 0.5% month over month in November and increased 2.0% year over year.
Chart 1
Prices for industrial products increase in November
Industrial Product Price Index
On a monthly basis, the IPPI rose 0.6% in November following a 1.2% increase in the previous month.
As prices for some products in the IPPI are reported in US dollars, changes in the CAD-USD exchange rate can exert an influence on the index. The Canadian dollar depreciated 1.6% against the US dollar from October to November. If the exchange rate from October had been applied to prices reported in US dollars, the IPPI would have increased by 0.3% instead of 0.6% in November.
Prices for lumber and other wood products (+5.7%) posted the largest month-over-month increase since March 2022 (+7.5%), leading the IPPI's monthly increase in November 2024. Higher prices for softwood lumber (+12.2%) drove the increase in this group, rising for the fourth consecutive month. This was the largest monthly increase in softwood lumber prices since January 2022 (+15.1%). A boost in demand during the first half of November 2024 and the industry's ongoing limited supply led to this price movement.
Energy and petroleum products rose 1.1% in November, mainly due to higher prices for refined petroleum energy products (+1.7%). Diesel fuel was up 3.3%, while light fuel oils increased 6.9%. The price increases for these distillate fuels were mainly due to higher demand for home heating fuel coming into the winter season. According to data from Natural Resources Canada, the monthly average refining margin for diesel rose 13.0% month over month in November.
Prices for motorized and recreational vehicles rose 0.7% month over month in November. Since many products in this category are exported to the United States, often being denominated in US dollars, the increase was partially attributable to the appreciation of the US dollar against the Canadian dollar in November. Higher prices were observed among several subgroups, including motor vehicle engines and motor vehicle parts (+0.8%), aircraft engines, aircraft parts and other aerospace equipment (+1.6%), and aircraft (+1.7%).
Some product groups decreased month over month in November, partly offsetting the IPPI's increase.
Prices for primary non-ferrous metal products fell 1.0% in November after rising for two months in a row. Unwrought gold, silver, and platinum group metals, and their alloys (-1.6%) led the decrease. Price declines were observed for unwrought silver and silver alloys (-2.8%) as well as unwrought platinum group metals, and their alloys (-3.2%). Precious metal prices experienced downward pressure from a strong US dollar and rising bond yields in November. Platinum group metals are often used in fossil fuel powered vehicles, so a shift toward electric vehicles could have implications for platinum demand.
The prices of meat, fish and dairy products decreased 1.1% from October to November. Prices were down for fresh and frozen poultry of all types (-3.1%) and for fresh and frozen pork (-3.5%). Weaker seasonal demand in November partially contributed to lower prices for poultry and pork products.
Year over year
The IPPI rose 2.2% year over year in November following a 1.1% increase in October. The largest upward contributor to November's year-over-year increase was unwrought gold, silver, and platinum group metals, and their alloys (+32.5%). Economic and geopolitical uncertainty contributed to the year-over-year rise in precious metal prices. Other noteworthy upward contributors included softwood lumber (+21.9%) and unwrought aluminum and aluminum alloys (+27.4%).
Partly offsetting the IPPI's increase, multiple product groups declined year over year in November. Most notably, prices were down for diesel fuel (-16.3%), finished motor gasoline (-5.2%), and grain and oilseed products, n.e.c. (not elsewhere classified) (-21.7%).
Raw Materials Price Index
The RMPI declined 0.5% month over month in November after posting a 4.0% increase in October. Lower prices for crude energy products were mainly responsible for the decline. Excluding crude energy products, the RMPI rose 0.6% in November.
Prices for crude energy products fell 2.2% in November following a 5.0% gain in October. The decrease was driven mainly by lower prices for conventional crude oil (-2.7%). Synthetic crude oil prices (-1.8%) also fell in November. Crude oil prices fell in part due to speculation of reduced geopolitical risks in the Middle East, as well as concerns about weak oil demand growth in China, the world's top crude oil importer.
Prices for animals and animal products rose 1.4% from October to November, mainly due to higher prices for hogs (+7.0%). According to the most recent data available, Canadian hog exports increased from September to October. The strong export demand partially contributed to the rise in hog prices in November.
Crop products (+2.0%) rose for the third consecutive month in November. Higher prices for other miscellaneous crop products (+6.7%), which include green coffee beans, mainly contributed to the increase. Coffee bean prices were higher as weather conditions in the top two coffee bean producing countries globally, Brazil and Vietnam, have recently tightened supply.
Year over year
The RMPI increased 2.0% on a yearly basis in November following three months of consecutive decreases.
Gold, silver, and platinum group metal ores and concentrates (+36.9%) was the primary contributor to the year-over-year increase in November. Other subgroups that experienced notable year-over-year price increases include cattle and calves (+10.8%), other miscellaneous crop products (+36.0%), and hogs (+15.8%). The supply of cattle and calves has been tight in 2024, contributing to the higher prices for cattle.
On the other hand, subgroups that experienced relatively large price declines in November 2024 compared with November 2023 include conventional crude oil (-5.2%), synthetic crude oil (-5.5%), canola (-12.8%), and logs and bolts (-10.9%).
Chart 2
Prices for raw materials fall in November
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Note to readers
The Industrial Product Price Index (IPPI) and the Raw Materials Price Index (RMPI) are available at the Canada level only. Selected commodity groups within the IPPI are also available by region.
With each release, data for the previous six months may have been revised. The indexes are not seasonally adjusted.
The IPPI reflects the prices that producers in Canada receive as goods leave the plant gate. The IPPI does not reflect what the consumer pays. Unlike the Consumer Price Index, the IPPI excludes indirect taxes and all costs that occur between the time a good leaves the plant and the time the final user takes possession of the good. This includes transportation, wholesale and retail costs.
Canadian producers export many goods. Canadian producers often indicate goods' prices in foreign currencies, especially in US dollars, which are then converted into Canadian dollars. This is particularly the case for motor vehicles, pulp and paper products, and wood products. Therefore, fluctuations in the value of the Canadian dollar against its US counterpart affect the IPPI. However, the conversion to Canadian dollars reflects only how respondents provide their prices. This is not a measure that takes into account the full effect of exchange rates.
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 RMPI 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.
Products
Statistics Canada 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 variety of statistics and measures related to producer prices.
The video "Producer price indexes" is available on the Statistics Canada Training Institute webpage. It introduces Statistics Canada's producer price indexes: what they are, how they are made and what they are used for.
Next release
The industrial product and raw materials price indexes for December 2024 will be released on January 22, 2025.
Contact information
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; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).
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