Statistics
Canada announced on Tuesday the Industrial Product Price Index (IPPI) was unchanged m-o-m in June,
following an upwardly revised 0.2 per cent m-o-m gain (from flat m-o-m) in the previous month.
Economists had expected
the IPPI to advance 0.2 per cent m-o-m in June.
According to
the report, prices declined in 13 out of 21 product categories,
led by tobacco products (-3.1 per cent m-o-m), plastic and rubber products (-1.3
per cent m-o-m), and primary ferrous metal products (-1.0 per cent m-o-m). Meanwhile,
meat, fish and dairy products (+2.4 per cent m-o-m), and pulp and paper
products (+1.7 per cent m-o-m) posted the biggest increases.
In y-o-y terms,
the IPPI increased 2.3 per cent in June, following an upwardly revised 2.1 per
cent rise (from +1.8 per cent) in May. This marked the
strongest annual gain since January 2023 (+4.8 per cent y-o-y).
The report also
revealed that the prices of raw materials purchased by manufacturers operating
in Canada, as measured by the Raw Materials Price Index (RMPI), fell 1.4 per
cent m-o-m in June after a downwardly revised 1.5 per cent m-o-m drop (from -1.0
per cent) in the previous month. The June fall
in RMPI was driven by a decrease in
costs of crude energy products (-1.2 per cent m-o-m).
On a y-o-y
basis, the RMPI soared 7.5 per cent, following a downwardly revised 6.9 per
cent surge (from +7.6 per cent) in May. This represented the strongest annual rise
since December 2022 (+9.0 per cent).