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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. 
     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. 
     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. 
     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. 
     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:

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