The Industrial Product Price Index (IPPI) in Canada increased 0.2 percent month-over-month in August 2019, rebounding from a 0.3 percent fall in the previous month and below market expectations of a 0.3 percent rise. Cost of meat, fish and dairy products (2.7 percent), in particular fresh and frozen pork (+9.9 percent); and primary non-ferrous metal products (2.4 percent), led by unwrought precious metals and precious metal alloys (+7 percent) were mostly offset by lower prices for energy and petroleum products (-2.8 percent), namely motor gasoline (-6.3 percent). Year-on-year, producer prices dropped 1 percent, after declining 1.7 percent in July. Meantime, prices for raw materials purchased by Canadian manufacturers, as measured by the Raw Materials Price Index (RMPI), went down 1.8 percent over the previous month, following an upwardly revised 1.3 percent gain in July, mostly due to lower prices of crude energy products. Producer Prices in Canada averaged 61.93 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 119.49 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 120.88 in 12 months time. In the long-term, the Canada Producer Prices is projected to trend around 127.93 Index Points in 2020, according to our econometric models.