September 2024 Sees Decline in Industrial and Raw Material Prices

Statistics Canada has released its report on the Industrial Product Price Index (IPPI) and Raw Materials Price Index (RMPI) for September 2024. The IPPI, which measures the price changes of products manufactured in Canada, showed a decrease of 0.6% from August to September. This index also recorded a year-over-year decline of 0.9%.

The RMPI, which tracks the prices of raw materials purchased by manufacturers, fell by 3.1% in September compared to the previous month. On a year-over-year basis, the RMPI experienced a significant drop of 8.8%.

Excluding energy and petroleum products, the IPPI increased by 0.2% in September. In contrast, the RMPI, excluding crude energy products, rose by 0.6% during the same period.

The decline in the RMPI was largely influenced by lower prices for crude energy products, particularly conventional crude oil, which saw its largest monthly decrease since December 2023. Prices for animals and animal products also contributed to the RMPI's decline, driven by lower prices for hogs.

Conversely, the prices of metal ores, concentrates, and scrap increased by 1.5% in September, with higher prices for gold, silver, and platinum group metal ores and concentrates contributing to this rise.

Statistics Canada notes that the conversion of prices received in US dollars is based on the average monthly exchange rate established by the Bank of Canada, which may not fully reflect the impact of exchange rate fluctuations.