Price of manufactured goods down again while raw materials costs rise 28%
Ottawa, ON -- Statistics Canada reports that prices for manufactured goods at the plant gate eased again in October...
Ottawa, ON — Statistics Canada reports that prices for manufactured goods at the plant gate eased again in October 2004, while the price of raw materials used by factories continued to grow.
According to the agency’s latest Industrial Product and Raw Materials Price Indexes, on a monthly basis, the prices charged by manufacturers fell by 0.5% for the second month in a row. Four of the last five months have seen monthly declines in the Industrial Product Price Index (IPPI).
The 12-month change in the IPPI was 5.4%, up from September’s increase of 4.7% but unchanged from July and August and down from a high of 7.0% in June.
Prices for petroleum and coal products continued to have a major influence on the 12-month change, rising 38.6% from October 2003. If petroleum and coal product prices had been excluded, the IPPI would have increased only 3.0% rather than 5.4%.
Meanwhile, raw materials cost factories substantially more, as manufacturers paid 28.0% more for their inputs than they did in October last year. This surpasses the 12-month rise of 24.6% of September and is the highest increase since March 2000.
On a 12-month basis, both mineral fuels (+52.5%) and crude oil prices (+68.0%) posted their largest gains since June 2000. If mineral fuels had been excluded, the Raw Materials Price Index (RMPI) would have increased only 8.8% instead of 28.0%.
The monthly increase in the RMPI was 3.8%, up from no change in September and the largest advance in the last six months.