On Tuesday, Statistics Canada (StatCan) reported that prices of products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI), fell 0.6% month-over-month in September and were down 0.9% year-over-year. Excluding energy and petroleum products, the IPPI rose 0.2%.

The IPPI’s monthly decline in September was moderated by higher prices for multiple product groups, including primary non-ferrous metal products and lumber and other wood products. Prices for lumber and other wood products rose 1.2%, increasing for the second consecutive month. Higher prices for softwood lumber, up 3.2%, led the gain. Sawmills’ curtailed activities and closures in the British Columbia interior region due to high operating costs caused a negative supply shock which contributed to this price increase, StatCan said.

The IPPI was 0.9% lower in September compared with one year earlier, the first year-over-year decrease since March, when it was down 0.4%.

StatCan also reported that the Raw Materials Price Index (RMPI) declined 3.1% month-over-month in September, following a 3.0% decline in August. This was the largest month-over-month decline in the RMPI since December 2023, when it fell 4.9%. Excluding crude energy products, the RMPI was up 0.6%.

The RMPI decreased 8.8% year-over-year in September—the largest decrease since July 2023, when it declined 10.9%. The largest contributors to the decrease were conventional crude oil, down 21.4%; synthetic crude oil, down 28.4%; and canola oil, down 23.0%.

Source: Statcan.gc.ca