Industrial Product Price Index Declines for First Time Since November 2020
Following what were several months of skyrocketing price increases, the Industrial Product Price Index (IPPI) fell by 0.4% in June, as wood prices finally eased their record-breaking price acceleration.
Despite last month’s decrease, the IPPI was still 16.2% higher compared to year-ago levels. Lumber and other wood products were largely responsible for the decrease, as the category reported a 6.9% drop in June.
Following record-breaking price growth in May, the price of softwood lumber— which is predominantly used for housing and other building construction— decreased 25% in June, marking the first decline since November 2020. However, softwood lumber prices still remained 172.6% higher compared to the same period a year ago.
Prices for chemicals and chemical products also contributed to the index’s decline, but only to a modest extent. Statistics Canada reported that this category suffered a 1.4% dROP, as petrochemicals reported their largest monthly decrease since April 2020. On the other hand, prices for energy and petroleum products were up 1% in June, largely due to elevated prices for crude oil.
For the first time since August of last year, prices of fruit, vegetables, feed and other food products decreased 1.4%. Conversely, the meat, fish and dairy products category reported a 2% increase, which helped offset the overall IPPI decline.
Information for this briefing was found via Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.