After three consecutive monthly advances, Statistics Canada reported its Industrial Product Price Index was down 0.3% in September, with 12 of the 21 major commodity groups posting declines.
Primary metal products (-0.9%) was the largest contributor to the decline of the index, according to the agency, mainly as a result of lower prices for aluminum products (-1.7%), copper and copper alloy products (-2.1%) and other non-ferrous metal products (-0.9%).
The nation's number crunchers also reported that the decrease in the IPPI was attributable to petroleum and coal products (-0.4%), which was down for the first time since April 2013. The downward movement was primarily a result of lower prices for gasoline (-1.9%). The IPPI excluding petroleum and coal products declined 0.2% in September.
To a lesser extent, meat, fish and dairy products (-0.9%) also contributed to the decrease in the IPPI, mainly because of lower prices for meat products (-1.4%).
Among other commodity groups posting declines was motor vehicles and other transportation equipment (-0.3%). This decrease was largely attributable to the appreciation of the Canadian dollar relative to the US dollar in September.
Some Canadian producers who export their products report their prices in US dollars. Consequently, the 0.6% increase in the value of the Canadian dollar relative to the U.S. dollar may have had the effect of decreasing the IPPI. Without the measurable effect of the exchange rate, the index would have fallen 0.1% instead of 0.3%.
Conversely, the agency concludes, the decline of the IPPI was moderated slightly by lumber and other wood products (+0.8%), mainly because of higher prices for softwood lumber (+2.2%).
