Industrial product prices increased 0.7% in July, mainly because of higher prices for motorized and recreational vehicles.
Figures released this morning by Statistics Canada show the Industrial Product Prices Index (IPPI) leaped for the third consecutive month in July, posting the largest gain since February 2015. Of the 21 commodity groups, 17 were up, two were down, and two were unchanged.
The main reason for the increase in the IPPI in July was higher prices for motorized and recreational vehicles (+2.5%). The gain was led by increases in passenger cars and light trucks (+2.7%), motor vehicle engines and motor vehicle parts (+2.0%), as well as aircraft (+4.1%). Higher prices for motorized and recreational vehicles were closely linked to the depreciation of the Canadian dollar relative to the U.S. dollar.
The nation's number crunchers added that a decrease in prices for energy and petroleum products (-1.1%) moderated the rise in prices. Lower prices for light fuel oils (-4.1%), diesel fuel (-4.0%) and heavy fuel oils (-5.7%) led the decline. Despite the lower prices for crude oil, motor gasoline edged up 0.3% in July, partly as a result of strong seasonal demand for gasoline in the summer. The IPPI excluding energy and petroleum products increased 1.0%.
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