Canada’s Industrial Product Price Index (IPPI), increased 0.8% in November and 18.1% compared with the same period in 2020. Meanwhile, the Raw Materials Price Index (RMPI), fell 1.0% in November, and was up 36.2% year over year. The index measures prices of raw materials purchased by manufacturers operating in Canada.
The IPI showed the seventh monthly increase for ammonia and chemical fertilizers, rising 10.5%—a huge 132.7% jump from last year’s number. Prices for fertilizer have surged due to higher prices for inputs used in fertilizer production, including natural gas and coal.
Food products also showed gains for the month. Flour and other grain mill products were up 2.3% on a monthly basis, 40.9% higher than November 2020. Grain and oilseed products, which includes soybean and canola oils, rose 7.3% month over month, and 26.8% year over year. Canola oil prices have been trending upward due to tight supply in Canada, while soybean meal prices spiked in November.
Meanwhile, prices for crude energy products fell by 4.4% on a monthly basis. Excluding crude energy products, the RMPI was up by 1.2% month over month. Prices for coal dropped a steep 32.8% as China augmented its production in response to tight supply and high prices. Year over year, coal prices are still up a strong 135.3%. Natural gas fell 4.5%, amid higher than expected temperatures in the United States.
