With the price of petroleum and metals on the rise, Canada’s Industrial Product Price Index (IPPI) and Raw Materials Price Index (RMPI) each increased in November.
Statistics Canada reports month-over-month growth on the two indexes of one percent and 2.2 percent, respectively.
IPPI reverses downward trend
The one-percent growth in the IPPI followed two consecutive months of decline, and represents the largest advance in industrial prices since June 2008.
The index was pushed up primarily by a 4.9-percent increase in the price of petroleum and coal products and a 1.6 percent uptick in the price of primary metal products.
Of the 21 major IPPI product groups, only one—miscellaneous non-manufactured products—saw prices fall from October to November.
While the index was up from October, it was down 2.8 percent compared with November 2008. Still, the year-over-year disparity was much narrower than it was in October, when the difference was 6.4 percent.
Raw materials continue on growth trend
The RMPI’s 2.2-percent growth in November built on a trend that began with a 2.5 percent increase in October.
Leading the charge was the price of non-ferrous metals, which rose 4.8 percent—the fourth consecutive monthly increase.
The prices of vegetable products and mineral fuels were up by 3.8 percent and 2.1 percent, respectively, while the price of animals and animal products grew by 0.9 percent. The price of ferrous metals increased 0.6 percent, while the price of wood edged up 0.1 percent.
Non-metallic minerals were the only commodity group on the RMPI to decline in price in October, falling by 0.3 percent.
Compared with November 2008 the RMPI was up by a hefty 9.3 percent—the first time in 13 months that the year-over-year differential was positive.