MNI DATA ANALYSIS:Energy Boosts Canadian Industrial Prices>

--Resending to Fix Typo in Headline

--IPPI +0.5% M/M; Excluding Energy and Petroleum -0.1% M/M

--IPPI Excluding CAD Appreciation Impact +0.9% M/M

By Yali N'Diaye

     OTTAWA (MNI) - Prices for manufactured goods produced in Canada 

increased for the fourth consecutive month in April, with a gain of 0.5% 

after 0.9% in March, boosted by energy prices, Statistics Canada 

reported Wednesday. 

     On a year-over-year basis, the Industrial Product Price Index 

increased at a steady pace of 2.4%, with energy also the main 

contributing factor to the rise. 

     The figures suggest prices will contribute positively to the value 

of manufacturing sales over the month, especially in the energy and 

petroleum sector. 

     --CONCENTRATED GAINS 

     Price gains were concentrated in 7 of 21 commodity groups, 

contributing to more than a fourth of the index. 

     The majority of categories (11) posted lower prices on the month, 

led by chemicals and chemical products (-0.5%). "Lower pharmaceutical 

prices were attributable to an agreement between the pan-Canadian 

Pharmaceutical Alliance and the Canadian Generic Pharmaceutical 

Association, which lowered prices for a large number of generic drugs as 

of April 1, 2018," the report said. 

     Three categories were unchanged on the month. 

     --ENERGY BOOST 

     Higher prices for energy and petroleum were the main upward 

contributor to both the monthly and 12-month price gains. 

     Energy and petroleum prices were up 4.5% on the month, including a 

7.2% gain for gasoline, as lower production from the Organization of the 

Petroleum Exporting Countries further pressured supply. 

     Excluding energy and petroleum, prices actually contracted 0.1% on 

the month, marking the first decline since September 2017. They 

increased 0.8% year-over-year. 

     --CAD APPRECIATION WEIGHS 

     The Canadian dollar appreciation over the month weighed on prices 

in April, when the loonie appreciated 1.6% against the U.S. dollar. 

     Had the exchange rate remained constant, prices would have 

increased 0.9% instead of 0.5%. 

     Prices for motorized and recreational vehicles, which are 

particularly sensitive to exchange rate fluctuations, edged down 0.1% on 

the month. 

     --HIGHER PRICES PAID 

     Prices paid by Canadian manufacturers for key raw materials also 

increased in April, when they were up 0.7% after rising 2.1% in March. 

Prices increased 8.9% year-over-year. 

     Once again, the Raw Materials Price Index was boosted by crude 

energy prices, which were up 3.2% on the month and 20.0% year-over-year. 

     Excluding crude energy, the RMPI was down 1.3% on the month and up 

0.6% year-over-year. 

--MNI Ottawa Bureau; email: yali.ndiaye@marketnews.com

[TOPICS: M$C$$$,MACDS$]