Factories paid 13.3% more for raw materials in April over last year
Ottawa, ON -- Monthly prices for manufactured goods at the factory gate increased for the fifth consecutive month i...
Ottawa, ON — Monthly prices for manufactured goods at the factory gate increased for the fifth consecutive month in April 2005, reports Statistics Canada. Raw materials prices were down from March as crude oil prices declined.
Prices charged by manufacturers, as measured by the Industrial Product Price Index (IPPI), rose 0.5% from March to April. Higher prices for petroleum products, motor vehicles and other transport equipment, pulp and paper products, chemical products and electrical and communication products were the main sources of the monthly increase.
The 12-month change in the IPPI was 1.5%, down from March’s increase of 2.3%.
The Raw Materials Price Index (RMPI) was down 1.6% from March to April, following a 6.3% increase the previous month. There were price decreases in mineral fuels, animals and animal products, non-ferrous metals as well as vegetable products.
Compared to April of last year, raw materials cost factories 13.3% more, down from the 12-month increase of 14.7% in March.
In April, the IPPI (1997=100) stood at 111.3, up from its revised level of 110.8 in March. The RMPI (1997=100) reached 142.2, down from a revised level of 144.5 in March.
On a month-over-month basis, manufacturers’ prices rose 0.5% following an increase of 0.3% in March.
IMPACT OF THE EXCHANGE RATE
Between March and April, the value of the Canadian dollar fell 1.6% against the US dollar. As a result, if the impact of the exchange rate had been excluded, the IPPI would have been unchanged from March, compared to the actual 0.5% increase.
On a 12-month basis, the value of the Canadian dollar rose 8.6% against the US dollar. If the impact of the exchange rate had been excluded, producer prices would have risen 3.7% between April 2004 and April 2005, rather than their actual 1.5% increase.