Today's Report (11/29/2021)
The price of products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI), increased 1.3% month over month in October and 16.7% compared with the same month in 2020. Prices for energy and petroleum products were up by 7.4% in October and were 72.1% higher than the same month last year. Motor gasoline (+5.3%), diesel and biodiesel fuels (+11.3%), as well as natural gas liquids and related products (+14.7%) all posted monthly increases. These gains were mainly due to higher prices for their feedstocks. Benchmark prices for crude oil reached a five-year high in October as global demand outweighed supply. Natural gas prices were lifted in part due to strained supplies in Europe and Asia.
Prices of raw materials purchased by manufacturers operating in Canada, as measured by the Raw Materials Price Index (RMPI), increased 4.8% month over month in October and 38.4% year over year. Prices for crude energy products were up by 13.0% in October. Conventional crude oil (+12.0%), natural gas(+21.0%) and coal (+25.2%), all posted increases. Prices for oil were driven up by global demand exceeding supply. Natural gas prices in North America have been influenced by the European market, where supplies have been strained amidst colder than expected weather.
Canadian IPPI (Industrial Producer Price Index)
What is it?
The CA IPPI index measures the movement in prices for manufactured goods produced in Canada, destined for domestic or export consumption.
Canadian RMPI (Raw Material Price Index)
What is it?
The Raw Materials Price Index (RMPI) provides the movement in prices for a group of major input products into goods produced in Canada. It helps cover the spectrum of price changes in the Canadian economy and is valuable directly and in relation to the price movements of products derived in part from these materials. In addition, the RMPI series supports the Canadian System of National Accounts (SNA), where it is used in the calculation of real Gross Domestic Product (GDP).