The Industrial Product Price Index (IPPI) in Canada increased 2.8 percent year-on-year in November 2018 compared to a downwardly revised 5.2 percent gain in the previous month. Prices rose mostly for energy and petroleum products (3.6%); pulp and paper products (11.3%), particularly wood pulp (+16.5%) and newsprint (+17.1%); primary ferrous metal products (14.0%) and motorized and recreational vehicles (2.1%). Meanwhile, cost fell for primary non-ferrous metal products (-5.6%). Lower prices for unwrought precious metals and precious metal alloys (-5.7%), unwrought aluminum and aluminum alloys (-14.1%), and other unwrought non-ferrous metals and non-ferrous metal alloys (-10.9%) were mainly responsible for the decline in this category. Producer Prices Change in Canada averaged 3.38 percent from 1957 until 2018, reaching an all time high of 21.10 percent in November of 1974 and a record low of -7.20 percent in July of 2009.
Producer Prices Change in Canada is expected to be 5.80 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Producer Prices Change in Canada to stand at 5.50 in 12 months time. In the long-term, the Canada Producer Prices Change is projected to trend around 4.10 percent in 2020, according to our econometric models.