Canada industrial product prices&raw material product prices
  • Prior month 0.4%
  • PPI (industrial product price index) MoM -1.0% versus 0.2% expected
  • PPI YoY -2.7% versus 0.6% last month
  • Raw material prices MoM -2.5% versus 3.9% last month (revised from 3.5%)
  • Raw material prices YOY -0.8% versus 2.9% last month (revised from 2.4%)

Details for industrial product prices:

  • Energy and petroleum product prices fell 5.7% in October, primarily due to a significant drop in finished motor gasoline (-8.4%), influenced by lower crude oil prices and weak gasoline demand in North America.

  • Softwood lumber prices decreased by 6.4% in October, mainly due to weak seasonal demand and the impact of high interest rates on real estate activities.

  • Intermediate food product prices dropped by 1.9% in October, driven by declining prices for canola oil (-7.5%) and soybean oil (-9.4%), driven by factors like reduced consumption and increased global soybean production.

  • Prices for primary non-ferrous metal products declined by 1.2% in October, with unwrought nickel, copper, and precious metals seeing drops due to supply factors, reduced industrial consumption during Chinese holidays, and strong US dollar.

  • Pulp and paper product prices rose 1.5% in October, mainly due to higher wood pulp prices (+8.2%) driven by strong demand and a global price increase announcement by a major pulp producer in Brazil.

Details for raw material price index:

  • Crude energy product prices fell 4.7% in October, mainly due to a drop in conventional crude oil prices (-3.7%). Prices were volatile, initially rising due to Middle East tensions but ultimately declining due to concerns about demand.

  • Metal ores, concentrates, and scrap prices declined by 1.6% in October, driven by lower prices for nickel ores and gold, silver, and platinum group metal ores.

  • Hog prices decreased by 3.6% in October due to ample supply and slow seasonal demand, while cattle and calf prices rose by 1.6% due to tight domestic supply.

  • Yearly cattle slaughter counts decreased in Canada and the US in October, and beef cold storage has been falling in both countries, with US storage down by 20.1% in September compared to the previous year.

Overall good news for pipeline inflation to move to the downside. The