Canadian Price Indexes Decline In April
May 31, 2009The decline in the IPPI was led by lower prices for motor vehicles and other transport equipment (-2.2%) and pulp and paper products (-2.3%). These two product groups are more affected by fluctuations in the exchange rate.
The Canadian dollar rose 3.3% in April in relation to its US counterpart. If the exchange rate used to convert these prices had remained unchanged, the IPPI would have risen 0.3% instead of declining 0.5%.
12-month change
Year over year, the IPPI fell 2.2% in April following ...
The decline in the IPPI was led by lower prices for motor vehicles and other transport equipment (-2.2%) and pulp and paper products (-2.3%). These two product groups are more affected by fluctuations in the exchange rate.
The Canadian dollar rose 3.3% in April in relation to its US counterpart. If the exchange rate used to convert these prices had remained unchanged, the IPPI would have risen 0.3% instead of declining 0.5%.
12-month change
Year over year, the IPPI fell 2.2% in April following a 0.1% decrease in March. This was the largest decline since January 2004, when the IPPI fell 3.1%. The IPPI was pulled down by lower prices for petroleum and coal products (-37.4%) and primary metal products (-14.8%). This decline in prices was partly offset by higher prices for motor vehicles and other transport equipment (+14.4%).
On a 12-month basis, prices for products excluding petroleum and coal rose 3.0%, the weakest increase in this rate in 9 months.
Since April 2008, the Canadian dollar has lost 17.2% of its value against its US counterpart, and if the direct effect of the exchange rate had been excluded, the IPPI would have fallen 7.6% instead of 2.2%.
Raw Materials Price Index
The RMPI posted a month-over-month decline of 0.5% in April, which contrasts with the growth in the first three months of the year, especially the 12.1% increase in March.
Prices for mineral fuels declined 2.5%, after increasing 26.0% in March. Excluding mineral fuels, the RMPI advanced 1.4%, down from the 2.5% increase in March. A 5.8% increase in prices for non-ferrous metals partially offset the impact of the decrease for mineral fuels on the RMPI.
From April 2008 to April 2009, prices for raw materials fell 31.2%, comparable to the changes recorded since December 2008. The drop in raw material prices was attributable to a strong 45.7% decline for mineral fuels and, to a lesser extent, lower prices for non-ferrous metals (-29.5%) and vegetable products (-15.7%).
Source: Statistics Canada
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