The Industrial Product Price Index (IPPI) in Canada went down 0.3 percent month-over-month in July of 2019, following a 1.4 percent drop in the previous month and missing market expectations of a 0.3 percent gain. Prices of meat, fish and dairy products decreased 1.9 percent, marking the second straight monthly fall, amid lower prices for fresh and frozen pork (-7.1 percent). In contrast, energy and petroleum products cost increased (1.2 percent), principally motor gasoline (3.9 percent). Year-on-year, producer prices declined 1.7 percent, the same as the revised value in the previous month. Meanwhile, following two months of decline, the Raw Materials Price Index (RMPI) rose 1.2 percent month-over-month in July, rebounding from a upwardly revised 6.1 percent decline in the prior month. Producer Prices in Canada averaged 61.86 Index Points from 1956 until 2019, reaching an all time high of 119.70 Index Points in June of 2018 and a record low of 15.60 Index Points in February of 1956.
Producer Prices in Canada is expected to be 122.47 Index Points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Producer Prices in Canada to stand at 121.35 in 12 months time. In the long-term, the Canada Producer Prices is projected to trend around 130.06 Index Points in 2020, according to our econometric models.