Canada Jan. Industrial Product and Raw Materials Prices

The following is the text of the industrial product and raw material prices report as reported by Statistics Canada.

In January, the Industrial Product Price Index （IPPI） inched up 0.2% and the Raw Materials Price Index （RMPI） edged up 0.3%. Both indexes posted slower growth compared with previous months.

The IPPI was up for the sixth consecutive month, inching up 0.2% in January following increases of 0.5% in November and 0.8% in December. The gain in January was led mainly by petroleum and coal products （+2.2%） and, to a lesser extent, by primary metal products （+0.8%） and fruits, vegetables, feeds and other food products （+0.5%）.

Higher prices for petroleum and coal products in January were supported largely by uncertainties concerning world oil supplies and stronger demand, due in part to more positive economic activity and colder weather.

In January, the largest contributors to the increase in primary metal products were copper and copper alloy products （+3.9%） and nickel products （+4.9%）. Copper and nickel prices were sustained by lower production and robust demand. Nickel was in high demand in the steel industry. The increase in the primary metal products price index was moderated by lower prices for precious metals.

The IPPI advance was moderated by a 0.8% decline in prices for motor vehicles and other transportation equipment. The decrease was due mostly to a 1.4% appreciation in the Canadian dollar relative to the US dollar.