Manufactured goods prices rose in January, as did cost of raw materials
Ottawa, ON -- Monthly prices for manufactured goods at the factory gate were up in January 2006, as prices for petr...
Ottawa, ON — Monthly prices for manufactured goods at the factory gate were up in January 2006, as prices for petroleum and primary metal products increased. Raw materials prices also rose in January, due to higher prices for crude oil. The figures come from Statistics Canada’s latest industrial product and raw materials price indexes.
Prices charged by manufacturers, as measured by the Industrial Product Price Index (IPPI), were up 0.5% from December to January. Higher prices for petroleum products, primary metal and lumber products were the major contributors to this monthly increase.
The 12-month change in the IPPI was 2.2%, down from December’s year-over-year increase of 2.6%, largely as a result of higher prices for petroleum products, chemical products and primary metal products, compared to one year ago.
The Raw Materials Price Index (RMPI) advanced 5.0% from December to January, following three months of decreases. The major contributors to this increase were mineral fuels, non-ferrous metals and vegetable products.
Compared to January of last year, raw materials cost factories 17.8% more, an increase similar to the 12-month change of 17.7% registered for December.
In January, the IPPI (1997=100) stood at 111.7, up from December’s revised level of 111.1. The RMPI (1997=100) reached 155.5, up from a revised level of 148.1 in December.
IMPACT OF THE EXCHANGE RATE
Between December and January, the value of the Canadian dollar against the U.S. dollar was up 0.3%. As a result, if the effect of exchange had been excluded, the total IPPI would have risen 0.6% instead of increasing of 0.5%.
On a 12-month basis, the value of the Canadian dollar rose 5.9% against its U.S. counterpart. If the impact of the exchange rate had been excluded, producer prices would have risen 3.8% between January 2005 and January 2006, rather than increasing 2.2%.