The Industrial Product Price Index (IPPI) declined 0.2% in November, mainly as a result of lower prices for primary non-ferrous metal products. The Raw Materials Price Index (RMPI) fell 4.0%, led by lower prices for crude energy products.
Industrial Product Price Index, monthly change
The IPPI declined for the fourth consecutive month, falling 0.2% in November. Among the 21 major commodity groups, 11 were up, 8 were down and 2 were unchanged.
The decline in the IPPI in November was mainly attributable to lower prices for primary non-ferrous metal products (-3.5%), which posted their largest decline since April 2013. Unwrought precious metals and precious metal alloys (-5.0%), specifically unwrought silver and silver alloys (-7.1%) and unwrought gold and gold alloys (-5.2%), were the main reasons for the decline in prices for primary non-ferrous metals. To a lesser extent, lower prices for unwrought copper and copper alloys (-4.3%) and unwrought aluminum and aluminum alloys (-3.0%) also put downward pressure on the commodity group.
Meat, fish, and dairy products (-1.5%) recorded their largest decline since September 2008, primarily because of lower prices for fresh and frozen pork (-3.9%), fresh and frozen poultry of all types (-3.2%) as well as processed meat products, other meats and animal by-products (-2.2%). The drop in prices for fresh and frozen pork coincided with a 15.2% decline in the price for hogs in November.
Also contributing to the decline in the IPPI in November was energy and petroleum products (-0.4%). Lower prices for asphalt (except natural) and asphalt products (-4.6%), motor gasoline (-1.2%), heavy fuel oils (-3.0%), and jet fuel (-3.6%) were the main reasons for the decline, while higher prices for diesel fuel (+1.9%) and light fuel oils (+1.9%) moderated the drop. The IPPI excluding energy and petroleum products declined 0.2% in November.
Also contributing to the decline, but to a lesser extent, were lower prices for fruit, vegetables, feed, and other food products (-0.4%), specifically other animal feed (-2.5%) as well as flour and other grain mill products (-3.4%).
Largely moderating the decline in the IPPI in November were higher prices for motorized and recreational vehicles (+1.2%), specifically passenger cars and light trucks (+1.3%), motor vehicle engines and motor vehicle parts (+0.8%) and aircraft (+1.5%). Higher prices for motorized and recreational vehicles were closely linked to the depreciation of the Canadian dollar relative to the US dollar.