The Industrial Product Price Index (IPPI) in Canada went down 0.8 percent month-over-month in November of 2018, the largest drop in almost two years, following a 0.2 percent increase in October. The decline was mainly attributable to lower prices for energy and petroleum products (-6.6%), namely the cost of motor gasoline (-10.7%), which posted its largest decrease since January 2015 (-12.0%). Also, prices fell for chemicals and chemical products (-1.6 percent), on weaker demand for petrochemicals (-8.8%). In contrast, cost increased mostly for motorized and recreational vehicles (0.6%); primary non-ferrous metal products (0.6%) and pulp and paper products (1.0%). Year-on-year, producer prices rose 2.8 percent compared to a downwardly revised 5.2 percent gain in the previous month. Producer Prices in Canada averaged 61.27 Index Points from 1956 until 2018, 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 123.52 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 119.00 in 12 months time. In the long-term, the Canada Producer Prices is projected to trend around 139.39 Index Points in 2020, according to our econometric models.