In January, the Canadian Industrial Product Price Index inched up 0.2 percent, led mainly by petroleum and coal products and, to a lesser extent, by primary metal products and by fruits, vegetables, feeds and other food products. The upward trend continues for six consecutive months, according to Statistics Canada.
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Higher prices for petroleum and coal products were supported largely by uncertainties concerning world oil supplies and stronger demand, due in part to more positive economic activity and colder weather.
In January, the largest contributors to the increase in primary metal products were copper and copper alloy products and nickel products.
The IPPI increase was moderated by a 0.8 percent decline in prices for motor vehicles and other transportation equipment. This decrease was attributable to a 1.4 percent appreciation in the value of the Canadian dollar relative to the US dollar.
Excluding petroleum and coal prices, the IPPI would have remained unchanged in January.
Since January 2010, the IPPI rose 2.7 percent mainly a result of higher prices for petroleum and coal products (+11 percent), primary metal products (+11.1 percent) and, to a lesser extent, fruits, vegetable, feeds and other food products (+3.6 percent) and chemical products (+2.3 percent).
The 4.9 percent appreciation of the Canadian dollar relative to the U.S. dollar dampened the IPPI year-over-year advance in January.
The RMPI in January edged up 0.3 percent relative to December 2010, primarily because of higher prices for non-ferrous metals (+3.7 percent), vegetable products (+4.6 percent) and animals and animal products (+2.5 percent).
Excluding mineral fuels, the RMPI would have increased 2.8 percent in January, which is comparable to the 3.1 percent gain in December.
Compared with the same month a year earlier, the RMPI was up 9.6 percent in January, following a 13.2 percent advance in December. Year over year, the RMPI has been on an upward trend since November 2009.
