The Industrial Product Price Index (IPPI) in Canada went down 1.4 percent month-over-month in June of 2019, following a downwardly revised 0.1 percent drop in the previous month and against market expectations of a 0.1 percent fall. It was the largest drop since July of 2017, as energy & petroleum products cost declined sharply (-6.9 percent vs 0.8 percent in May), driven by lower prices for motor gasoline (-8.8 percent), diesel fuel (-9.3 percent) and light fuel oils (-7.4 percent). Additionally, prices dropped for motorized and recreational vehicles (-0.6 percent vs 0.4 percent) and for primary non-ferrous metal products (-1.2 percent vs -2.5 percent). Year-on-year, producer prices declined 1.7 percent compared to a downwardly revised 0.4 percent gain in the previous month. Producer Prices in Canada averaged 61.79 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 122.47 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 123.31 in 12 months time. In the long-term, the Canada Producer Prices is projected to trend around 130.06 Index Points in 2020, according to our econometric models.