The Industrial Product Price Index (IPPI) in Canada increased 5.3 percent year-on-year in October, down from an upwardly revised 6.3 percent rise in September. Prices advanced mainly for energy and petroleum products (18%), particularly motor gasoline (13.9%), light fuel oils (23.2%) and diesel fuel (24.9%). Pulp and paper products (14.9%); motorized and recreational vehicles (2.5%) and chemicals and chemical products (5.3%) also contributed to the rise. In contrast, cost fell for primary non-ferrous metal products (-5.0%), due to lower prices for unwrought precious metals and precious metal alloys (-5.6%), other unwrought non-ferrous metals and non-ferrous metal alloys (-12.6%) and unwrought aluminum and aluminum alloys (-11.3%). 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 6.30 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 5.80 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.