Manufacturing, raw materials prices down in December; but overall charges up from 2004

OTTAWA — Monthly prices for manufactured goods at the factory gate were down in December, as prices for petroleum products declined for a third month. Raw materials prices were down for a fourth consecutive month in December, as prices for crude oil continued to fall.

Prices charged by manufacturers, as measured by the Industrial Product Price Index (IPPI), were down 0.3 percent from November to December. Lower prices for petroleum products, motor vehicles and chemical products were the major contributors to this monthly decrease.

The Raw Materials Price Index (RMPI) was down 1.2 percent from November to December, following a 1.5 percent decrease the previous month. But compared to December 2004, raw materials cost factories 16.8 percent more, up from the 12-month change of 12.7 percent in November.

Manufacturers got 1.5 percent more
despite raw material cost spike

Petroleum and coal products prices decreased 2.1 percent compared to November, while motor vehicles and other transport equipment declined 1.2 percent as the Canadian dollar remained strong. Prices for chemical products fell 1.3 percent from the previous month as lower prices were observed for synthetic resins.

Prices for electrical and communication products, pulp and paper products as well as machinery and equipment also declined from the previous month, states Stats Can.

On a monthly basis, prices for finished goods were down 0.4 percent from November.

Compared with December 2004, prices for finished goods were up by 0.9 percent.

2005 IN REVIEW:

For 2005, manufacturers received an average of 1.5 percent more for their products than in 2004, much lower than the 3.1 percent increase in 2004.

The main contributors to this increase were petroleum and coal products (+23.5%), primary metal products (+2.7%), metal fabricated products (+3.8%), chemical products (+6.2%) and rubber, leather and plastic fabricated products (+5.6%).

Motor vehicles and other transport equipment prices were down 4.6 percent on average in 2005. Lumber and other wood products also declined 8.4 percent in 2005 compared to 2004 as prices were lower on average for softwood lumber, particleboard and softwood type plywood.

Raw materials prices were up an average of 12.9 percent in 2005 compared to the 11.8 percent increase in 2004.


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