The Industrial Product Price Index (IPPI) in Canada rose 0.8 percent month-on-month in April 2019, following a 1.3 percent gain in March and above market expectations of a 0.7 percent increase. Cost slowed for energy & petroleum products (4.2 percent vs 6.6 percent in March); textile & leather (0.1 percent vs 0.8 percent) and motorized & recreational vehicles (0.1 percent vs 0.4 percent) while prices fell for clothing & footwear (-0.1 percent vs 0.4 percent); chemicals & chemical products (-0.2 percent vs 1.1 percent). On the other hand, cost rebounded for fruit & vegetables (0.1 percent vs -0.2 percent) and furniture & fixtures (0.5 percent vs -0.2 percent). Year-on-year, producer prices advanced 1.8 percent, after a 1.5 percent rise in the previous month. Meantime, prices for raw materials purchased by Canadian manufacturers, as measured by the Raw Materials Price Index (RMPI), increased 5.6 percent in April following a 2.8 percent rise in the previous month. Producer Prices in Canada averaged 61.64 Index Points from 1956 until 2019, reaching an all time high of 119.70 Index Points in June of 2018 and a record low of 15.60 Index Points in February of 1956.
Producer Prices in Canada is expected to be 123.29 Index Points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Producer Prices in Canada to stand at 123.70 in 12 months time. In the long-term, the Canada Producer Prices is projected to trend around 132.72 Index Points in 2020, according to our econometric models.