Issue 16-187: Industrial Product Price Index (IPPI)
September 30, 2016
The Industrial Product Price Index (IPPI), which measures average price changes that Canadian producers received for their products, slipped 0.5% in August. Prices were down or flat in 19 of the 21 major product groups. A 2.3% drop in meat, fish and dairy products exerted the most downward pressure. Also chief among those products that experienced a decrease in prices were energy and petroleum (-1.3%) and motorized and recreational vehicles (-0.3%) products.
It is important to note that many industrial products are priced in U.S. dollars and a recent 0.4% appreciation of the loonie against the greenback put downward pressure on prices received when converted back into Canadian funds. Without the impact of the exchange rate, the IPPI would have been 0.4% lower instead of 0.5%.
Data Source: Statistics Canada