Oil driving up costs
May 12, 2011 – In March, the Industrial Product Price Index rose 0.9 per cent, led by the strong increase in petroleum and coal products. The upward trend continued since mid-2010. Prices for petroleum and coal products rose sharply in March, influenced by reduced production in oil-producing countries.
The IPPI advance was moderated by a 0.8 per cent decline in prices for motor
vehicles and other transportation equipment. The decrease was largely
the result of the 1.1 per cent appreciation of the Canadian dollar relative to
the US dollar.
In March, excluding petroleum and coal products, the IPPI would have decreased by 0.1 per cent. Since March 2010, the IPPI rose 5 per cent, mainly a result of
higher prices for petroleum and coal products (up 24.3 per cent) and primary metal
products (up 13.6 per cent).
The 4.8 per cent year-over-year appreciation of the Canadian dollar
relative to the US dollar dampened the IPPI advance in March.
The Raw Material Price Index rose 5.7 per cent in March relative to February 2011, almost
exclusively as a result of higher prices for crude oil (up 16.2 per cent). Excluding mineral fuels, the RMPI would have decreased 1.9 per cent in March, registering the first decline since July 2010.
Compared with the same month a year earlier, the RMPI was
up 16.7 per cent in March, following an 11.3 per cent gain in February. Year over year, the RMPI has been on an upward trend since November, 2009.