Canada's industrial product price index was down 0.1 percent in December, following a 1.4 percent increase in November. Of the 21 major commodity groups, 9 were down, 8 were up and 4 were unchanged.

The decline in the IPPI was largely attributable to lower prices for energy and petroleum products (-0.7 percent) and primary non-ferrous metal products (-1.2 percent).

Energy and petroleum product prices declined for the first since June 2017, mainly due to lower prices for motor gasoline (-3.4 percent) and, to a lesser extent, lubricants and other petroleum refinery (-2 percent) products. Conversely, prices for light fuel oils (+1.6 percent), diesel fuel (+1 percent) and jet fuel (+3.7 percent) increased in December. The IPPI excluding energy and petroleum products was unchanged.

Unwrought precious metals and precious metal alloys (-2.8 percent) were the main contributor to the decrease in primary non-ferrous metal products, followed by unwrought aluminum and aluminum alloys (-1.8 percent). Within the unwrought precious metals and precious metal alloys group, unwrought silver and silver alloys (-5.2 percent), other unwrought precious metals and precious metal alloys (including platinum group metals) (-2.3 percent) and unwrought gold and gold alloys (-1.6 percent) all contributed to the decrease.

To a lesser extent, lower prices for meat, fish and dairy products (-0.4 percent) also contributed to the decrease in the IPPI. Lower prices for fresh and frozen beef and veal (-1.1 percent) were mainly responsible for the decline in this product group.

The decline in the IPPI was primarily moderated by higher prices for chemicals and chemical products (+0.8 percent). Petrochemicals (+2.3 percent) and ammonia and chemical fertilizers (+3.2 percent) were the main contributors to the increase in this product group.

Higher prices for pulp and paper products (+1.5 percent) also moderated the decline in the IPPI, mainly due to wood pulp (+3.8 percent).

Some IPPI prices are reported in US dollars and converted to Canadian dollars using the average monthly exchange rate. Consequently, any change in the value of the Canadian dollar relative to the US dollar will affect the level of the index. However, from November to December, the value of the Canadian dollar relative to the US dollar was unchanged.

The IPPI rose 2.2 percent over the 12-month period ending in December, after increasing 2.7 percent in November.

Compared with December 2016, the increase in the IPPI in December was largely due to higher prices for energy and petroleum products (+11.2 percent). Motor gasoline (+10.1 percent), light fuel oils (+15.1 percent) and diesel fuel (+13.6 percent) were the main contributors to the increase in this product group. Year over year, the IPPI excluding energy and petroleum products rose 0.9 percent.

Primary non-ferrous metal products (+5.1 percent) posted a fifth consecutive year-over-year gain in December. The increase in this product group was mainly due to higher prices for unwrought copper and copper alloys (+15 percent), unwrought aluminum and aluminum alloys (+13.1 percent) and other unwrought non-ferrous metals and non-ferrous metal alloys (+11.6 percent). These gains were moderated by lower prices for unwrought precious metals and precious metal alloys (-1.9 percent).

Prices for pulp and paper products (+7.3 percent) also increased compared with December 2016, mainly due to higher prices for wood pulp (+21.7 percent).

Meat, fish and dairy products (+3.6 percent) also rose year over year in December, led by fresh and frozen pork (+14 percent) and fresh and frozen beef and veal (+8.2 percent).

The year-over-year increase in the IPPI was primarily moderated by lower prices for motorized and recreational vehicles (-3.6 percent), particularly passenger cars and light trucks (-4.7 percent) and, to a lesser extent, motor vehicle engines and motor vehicle parts (-2.2 percent).

The RMPI decreased 0.9 percent in December, following a 5.4 percent increase in November. Of the six major commodity groups, four were down and two were up.

The decrease in the RMPI was mainly due to lower prices for crude energy products (-1.8 percent), specifically conventional crude oil (-2 percent), which posted its first decrease since July 2017. Canadian refiners paid less for conventional crude oil in December after supplies of Canadian crude oil increased due to the Keystone pipeline shutdown in November. The RMPI excluding crude energy products was unchanged.

To a lesser extent, prices for crop products (-0.4 percent) also contributed to the decrease in the RMPI. The decrease in this product group was mainly attributable to lower prices for canola (including rapeseed) (-2.3 percent), cocoa beans (-9.9 percent) and oats (-4.2 percent).

Higher prices for logs, pulpwood, natural rubber and other forestry products (+1.7 percent) moderated the decrease in the RMPI.

The RMPI rose 6.2 percent year over year in December, following a 13.9 percent gain in November.

Compared with December 2016, the increase in the RMPI in December was mainly due to higher prices for crude energy products (+7.8 percent), particularly conventional crude oil (+7.9 percent). Year over year, the RMPI excluding crude energy products rose 4.9 percent.

Prices for metal ores, concentrates and scrap increased 8.8 percent compared with December 2016, continuing an upward trend that began in July 2016.

Prices for animals and animal products (+4.9 percent) also rose year over year. Prices for hogs (+14.7 percent) and, to a lesser extent, cattle and calves (+4.2 percent) and fish, shellfish and other fishery products (+9.2 percent) were largely responsible for the gain in animals and animal products.