Industrial product and raw materials prices fell in November
Ottawa, ON -- Jan. 11, 2002 -- Manufacturers' prices, as measured by the Industrial Product Price Index (IPPI), dec...
Ottawa, ON — Jan. 11, 2002 — Manufacturers’ prices, as measured by the Industrial Product Price Index (IPPI), declined 1.9% in November 2001 compared with November 2000, their second consecutive month of negative growth, reports Statistics Canada. This was a slightly stronger pace than the year-over-year decline of 1.2% in October.
The Industrial Product Price Index (IPPI) reflects the prices that producers in Canada receive as the goods leave the plant gate. It does not reflect what the consumer pays. The Raw Materials Price Index (RMPI) reflects the prices paid by Canadian manufacturers for key raw materials.
Petroleum and coal product prices tumbled 23.8%, the fifth straight month of negative growth. If petroleum and coal product prices were excluded, the IPPI would have decreased only 0.2% instead of 1.9%.
Lower prices for pulp and paper products and primary metal products also contributed to the annual decline in manufacturers’ prices. Higher prices for motor vehicles and fruit, vegetable and feed products as well as meat products partly offset the yearly decrease.
On a month-to-month basis, industrial prices were unchanged in November from October, after declining 1.3% in October from September. Lower prices for petroleum and coal products and meat products were offset by higher prices for autos, trucks and other transportation equipment, primary metal products and lumber products.
Manufacturers paid 16.2% less in November for their raw materials than they did in November 2000, the fourth consecutive month of negative growth. Mineral fuels were responsible for most of the decline in the Raw Materials Price Index (RMPI), along with wood products and non-ferrous metals.
If mineral fuels were excluded, the RMPI would have declined only 3.2%. These decreases were partly offset by higher prices for vegetable products and ferrous materials.
On a monthly basis, raw materials prices were down 2.9% in November from October. Lower prices for mineral fuels and animal products were the major contributors to the monthly decrease.
The IPPI (1997=100) was 106.5 in November, unchanged from a revised 106.5 in October. The RMPI (1997=100) fell to 103.5 in November from its revised level of 106.6 in October.