Canada’s industrial product price index sees 2.9 percent annual increase last month

(MENAFN) Canada's industrial product price index (IPPI) saw a year-on-year increase of 2.9 percent in July, marking the fourth consecutive month of annual gains. This growth reflects a continuation of upward trends in industrial product prices, with the June figure also revised slightly upward from an initial 2.8 percent to 2.9 percent. The increase in July was primarily driven by significant price hikes in key commodities, including unwrought gold, silver, platinum group metals, and their alloys, which surged by 25.3 percent. Additionally, unwrought aluminum and aluminum alloys experienced a notable price rise of 26.3 percent.

Despite the annual increase, the IPPI remained unchanged on a month-to-month basis in July compared to June. This stability contrasts with the previous month's figures, as the June IPPI was revised down to show a slight decline of 0.1 percent, whereas it had initially been reported as unchanged. The monthly stability in July reflects a balance between varying price movements in different sectors of the industrial market.

Higher prices for energy and petroleum products, which saw an increase of 2 percent, played a significant role in the overall IPPI movement. However, this rise in energy costs was counterbalanced by decreases in other areas, notably in lumber and wood products, which fell by 3.4 percent. This interplay of rising and falling prices across different categories underscores the complexity of the factors influencing the industrial product price index.

Excluding energy and petroleum products from the calculation, the IPPI actually declined by 0.2 percent. This adjustment highlights the impact of energy costs on the overall index, as removing these factors reveals a decrease in industrial product prices. Statistics Canada noted this adjustment to illustrate the significant role that energy and petroleum products play in the overall IPPI trends.

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