Canada Producer Prices1956-2021 Data | 2022-2023 Forecast | Calendar | Historical

The industrial product price index in Canada fell 0.4% month over month in July 2021, compared to initial estimates of a flat reading and market consensus of a 0.1% increase. Among the 21 major commodity groups, 17 were up, 3 were down, and 1 was unchanged. Lumber and other wood products declined 23%, primarily driven by a 37.7% drop in prices for softwood lumber, the biggest monthly decline on record for this product group. Prices for basic and semi-finished iron or steel products were up 5.9% in July, an 11th consecutive monthly increase; and prices of the energy and petroleum products commodity group rose 3.1%. Year over year, the IPPI rose 15.4% in July, a 12th consecutive advance, following a 17.2% increase in June. This was mostly driven by higher prices for energy and petroleum products (+46.9%), primary ferrous metal products (+49.8%), as well as lumber and other wood products (+39.1%) compared with July 2020.

The industrial product price index in Canada went up 0.1% month over month in July 2021, following an upwardly revised 0.3% rise in the prior month, a preliminary estimate showed. The growth in the IPPI was led primarily by higher prices for energy and petroleum products (+5.1%) and chemicals and chemical products (+6.3%). Prices for primary ferrous metal products (+5.6%), such as basic and semi-finished iron or steel products (+5.7%), which have been increasing since September 2020, also supported the monthly gain in the IPPI. Motorized and recreational vehicles (+1.2%) posted a monthly increase in July, led mainly by motor vehicle engines and motor vehicle parts (+1.8%), and passenger cars and light trucks (+1.2%). These gains were largely moderated by lower prices for lumber and other wood products (-23.0%), namely softwood lumber (-37.7%), due to increased supply at sawmills. Year-over-year, the index advanced 16.2%, after an upwardly revised 17.4% jump in the previous month.

The industrial product price index in Canada was flat month over month in June of 2021, compared to initial estimates of a 0.4% fall. The biggest influence was the decline in the lumber and other wood products (-6.8%). If lumber and other wood products were excluded from calculation, producer prices would have risen 0.6%. On the other hand, meat products were up 3.7%, a 6th consecutive monthly rise, due to seasonal demand and supply chain disruptions as well as higher prices for animal feed (in the months leading up to June). Year-on-year, industrial producer prices increased 16.8% year-on-year in June of 2021, higher than initial estimates of a 16.2%, but easing from 16.9% in May.

The industrial product price index in Canada edged down 0.4% month over month in June 2021, following an upwardly revised 3.1% rise in the prior month, a preliminary estimate showed. Excluding energy and petroleum products, the IPPI went down 0.5%. It was the first monthly drop in producer prices since last November, mainly weighed down by prices of lumber and other wood products (-6.9%), in particular softwood lumber (-12.8%), following a record monthly growth in May. To a lesser extent, downward pressure also came from chemicals & chemical products (-1.4%), on lower petrochemical prices (-13.9%); fruits, vegetables, feed & other foot products (-1.4%), dragged down by grain and oilseed products (-8.5%); and non-ferrous metals (-0.8%). On an annual basis, the IPPI hiked 16.2%, the eleventh straight month of increases.