StatCan Text: Canada Sept IPPI -0.3% M/M;Ex CAD Impact +0.3%>

     OTTAWA (MNI) - Following is the text of the report on industrial 

product prices for the month of September released Tuesday by Statistics 

Canada: 

     The Industrial Product Price Index (IPPI) declined 0.3% in 

September, mainly due to lower prices for motorized and recreational 

vehicles and meat, fish, and dairy products. Higher prices for energy 

and petroleum products mostly offset the declines observed elsewhere. 

     The Raw Materials Price Index (RMPI) edged down 0.1%, primarily due 

to lower prices for animals and animal products. Higher prices for crude 

energy products mostly offset the decline. 

     Industrial Product Price Index, monthly change 

     The IPPI was down 0.3% in September, following a 0.4% increase in 

August. Of the 21 major commodity groups, 16 were down, 4 were up and 1 

was unchanged. 

     Among the four major commodity groups that saw higher prices in 

September, energy and petroleum products (+4.4%) posted the largest 

increase. This growth was primarily due to higher prices for motor 

gasoline (+3.8%), light fuel oil (+5.7%) and diesel fuel (+4.8%). This 

was the largest increase for energy and petroleum products since 

December 2016, when prices rose 5.5%. The IPPI excluding energy and 

petroleum products decreased 0.9%. 

     Motorized and recreational vehicles (-1.6%), which decreased for a 

fourth consecutive month, was the largest contributor to the decline in 

the IPPI. Lower prices for passenger cars and light trucks (-1.8%), 

motor vehicle engines and motor vehicle parts (-1.5%) and aircraft 

(-2.5%) were mainly responsible for the decline in this commodity group. 

Lower prices for motorized and recreational vehicles were closely linked 

to the appreciation of the Canadian dollar relative to the US dollar. 

     The meat, fish and dairy products group (-3.1%) also contributed 

significantly to the decrease in the IPPI. Lower prices for fresh and 

frozen pork (-8.9%), fresh and frozen beef and veal (-4.7%) and 

processed meat products, other meat and animal by-products (-4.1%) were 

the main contributors to this decrease. This was the third consecutive 

decline in the meat, fish and dairy products group and the largest since 

September 2004 (-3.7%). 

     Pulp and paper products (-1.2%) and electrical, electronic, 

audiovisual and telecommunication products (-1.0%) also contributed to 

the decline in the IPPI, but to a lesser extent. 

     The decrease in the pulp and paper products group was mainly due to 

lower prices for wood pulp (-1.4%). 

     Lower prices for communication and audio and video equipment 

(-1.4%) and electronic and electrical parts (-1.7%) were mainly 

responsible for the decline in the electrical, electronic, audiovisual 

and telecommunication products commodity group. 

     Some IPPI prices are reported in US dollars and converted to 

Canadian dollars using the average monthly exchange rate. Consequently, 

any change in the value of the Canadian dollar relative to the US dollar 

will affect the level of the index. From August to September, the 

Canadian dollar rose 2.6% in relation to the US dollar. If the exchange 

rate had remained constant, the IPPI would have increased 0.3% instead 

of decreasing 0.3%. 

     Industrial Product Price Index, 12-month change 

     The IPPI rose 1.5% in the 12-month period ending in September, 

following a 2.3% increase in August. 

     Compared with September 2016, the increase in the IPPI was largely 

attributable to higher prices for energy and petroleum products 

(+12.5%), up year over year for a 10th consecutive month. The growth in 

this commodity group was mainly due to higher prices for motor gasoline 

(+13.6%), light fuel oil (+12.6%) and diesel fuel (+12.9%). The IPPI 

excluding energy and petroleum products increased 0.2% from the same 

month last year. 

     On a year-over-year basis, primary non-ferrous metal products 

(+2.5%) also contributed to the increase in the IPPI. Prices for 

unwrought copper and copper alloys (+31.2%), other unwrought non-ferrous 

metals and non-ferrous metal alloys (+18.0%) and unwrought aluminum and 

aluminum alloys (+14.5%) mainly contributed to the increase in primary 

non-ferrous metal products. 

     Pulp and paper products were up 4.4% compared with September 2016, 

primarily due to higher prices for wood pulp (+12.8%). 

     The year-over-year increase in the IPPI was primarily moderated by 

lower prices for motorized and recreational vehicles (-4.2%). Lower 

prices for passenger cars and light trucks (-4.9%) and, to a lesser 

extent, motor vehicle engines and motor vehicle parts (-2.8%) and 

aircraft (-4.9%) were largely responsible for the decline in this 

commodity group. 

     Prices for electrical, electronic, audiovisual and 

telecommunication products (-2.4%) were also down compared with 

September 2016. The decline in this commodity group was mainly 

attributable to lower prices for electronic and electrical parts (-4.7%) 

and communications and audio and video equipment (-3.2%). 

     In celebration of the country's 150th birthday, Statistics Canada 

is presenting snapshots from our rich statistical history. 

     With the start of the Second World War, the Canadian economy 

recovered from the Great Depression, producing food, raw materials and 

manufactured goods for the Allied war effort. From 1939 to 1945, the 

Canadian General Wholesale Price Index increased by 33%. The largest 

increases were for animals and their products (+49%), vegetable products 

(+48%), wood, wood products, and paper (+44%), fibres, textiles and 

textile products (+32%), chemicals and allied products (+24%), 

non-metallic minerals and their products (+14%) and iron and its 

products (+13%). 

     By the end of the war, Canadian exports accounted for a significant 

share of British consumption, including 57% of wheat and flour, 39% of 

bacon, 15% of eggs, 24% of cheese and 11% of evaporated milk. 

     Raw Materials Price Index, monthly change 

     The RMPI edged down 0.1% in September, following a 0.9% increase in 

August. Of the six major commodity groups, four were down, one was up 

and one was unchanged. 

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

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