The Industrial Product Price Index (IPPI) in Canada went down 0.7 percent month over month in December of 2018, after decreasing 0.8 percent in the prior month and compared to market expectations of a 0.2 percent gain. The cost of energy and petroleum products declined 7.4 percent, the most since January 2016 led by motor gasoline (-7.4%), light fuel oils (-9.6%) and diesel fuel (-8.5%). Cost also fell for chemicals & chemical products (-1.5%). In contrast, prices rose for motorized and recreational vehicles (0.8%); primary non-ferrous metal products (1.6%) and electrical, electronic, audiovisual and telecommunication products (0.9%). Year-on-year, producer prices rose 2.2 percent, easing from a 2.8 percent rise in the prior month. Producer Prices in Canada averaged 61.34 Index Points from 1956 until 2018, 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 123.52 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 119.00 in 12 months time. In the long-term, the Canada Producer Prices is projected to trend around 139.39 Index Points in 2020, according to our econometric models.