Canadian RMPI reports yearly increase of 7.6 percent last month
Date
6/23/2024 5:37:41 AM
(MENAFN) Canada's Raw Materials Price Index (RMPI) reported a substantial annual increase of 7.6 percent in May, as per official figures released on Friday. The index, which tracks the prices of raw materials purchased by Canadian manufacturers, showed notable fluctuations and trends within various sectors.
Statistics Canada highlighted that excluding energy, the RMPI rose by 4.5 percent from April to May, primarily driven by significant price hikes in metal ores, concentrates, and scrap materials. In particular, prices for metal ores and scrap saw robust increases during this period.
Furthermore, crop products also contributed to the RMPI's rise, increasing by 3 percent in May, marking the third consecutive month of growth. Wheat and grains saw particularly notable increases, with wheat prices rising by 10.7 percent and grains by 3.1 percent. The agency noted that adverse weather conditions in Russia and Northern Europe had impacted global wheat production forecasts for the current crop year, contributing to these price increases.
However, the RMPI experienced a 1 percent decline in May compared to the previous month, marking its first monthly decrease after four consecutive months of increases. This decline was largely driven by a 6.4 percent drop in prices for crude energy products, representing the first monthly decrease since December 2023.
Revisions to previous data showed that the annual RMPI figure for April was adjusted down to a gain of 2.9 percent from the initially reported 3.1 percent, reflecting adjustments in price dynamics. Similarly, April's monthly figure was revised downward to a 5.3 percent increase from the previously reported 5.5 percent, which had marked the largest month-on-month rise since March 2022.
These fluctuations underscore the volatility in raw material prices affecting Canadian manufacturers, influenced by global supply chain disruptions, geopolitical factors, and weather-related impacts. Monitoring these price movements will be crucial for assessing their potential impacts on production costs and overall economic stability in Canada.
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